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28 JAN 2016

28 JAN 2016 Press release

Press release

Interim results, six months ended 31 December 2015

Momentum continues with stronger top line growth and higher free cash flow

  • 1.8% organic net sales growth, on 1.0% organic volume growth
  • 2.4% organic operating profit growth
  • Adverse exchange and the impact of the disposal of non core assets, reduced net sales by £400 million and operating profit* by £156 million to £5,606 million and £1,717 million, respectively
  • Free cash flow £0.8 billion up £140 million on comparable period
  • eps of 56.1 pence, up 7%. Pre-exceptional eps 51.3 pence, down 4%
  • Interim dividend up 5% to 22.6 pence per share

*Before exceptional items

Ivan Menezes, Chief Executive, commenting on the first half said:

“Diageo has become a stronger, more competitive business. We have delivered volume growth, a stronger top line, improved the performance of our key brands, driven cost productivity and continued to generate strong cash flow. While trading conditions remain challenging in some markets, Diageo’s brands, capabilities in marketing and innovation and our route to consumer have proved resilient. I am confident that Diageo can deliver improved, sustained performance.

For the full year we expect volume growth to drive stronger top line performance, margin to slightly improve and strong cash conversion to continue. This will set us up to deliver better momentum in F17, with productivity gains supporting margin expansion and investment in growth. We remain confident of achieving our objective of mid-single digit top line growth and 100bps of organic operating margin improvement in the three years ending fiscal 19.”

ENDS

Enquiries

Investor enquiries to:

Catherine James +44 (0) 20 8978 2272
Pier Falcione +44 (0) 20 8978 4838
Rohit Vats +44 (0) 20 8978 1064
investor.relations@diageo.com 

Media enquiries to:

Dominic Redfearn +44 (0) 20 8978 2714
Kirsty King +44 (0) 20 8978 6855
Lisa Crane +44 (0) 20 8978 4771
global.press.office@diageo.com

About Diageo

Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits, beer and wine categories. These brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Diageo is a global company, and our products are sold in more than 180 countries around the world. The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). For more information about Diageo, our people, our brands, and performance, visit us at www.diageo.com. Visit Diageo’s global responsible drinking resource, www.DRINKiQ.com, for information, initiatives, and ways to share best practice.

Celebrating life, every day, everywhere.