List
identifying information required to be furnished
by
Diageo plc pursuant to Rule 13a-16 or 15d-16 of
The
Securities Exchange Act 1934
1 –
31 August 2008
|
Information
|
Required
by/when
|
|
Public
Announcements/Press
|
The
Stock Exchange, London
|
|
Announcement
Company
releases shares from treasury to satisfy grants made under employee
share
plans.
(01
August 2008)
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(18
August 2008)
|
|
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(01
August 2008)
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(19
August 2008)
|
|
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(04
August 2008)
|
Announcement
Company
releases shares from treasury to satisfy grants made under employee
share
plans.
(20
August 2008)
|
|
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(05
August 2008)
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(20
August 2008)
|
|
|
Announcement
Company
releases shares from treasury to satisfy grants made under employee
share
plans.
(06
August 2008)
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(21
August 2008)
|
|
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(06
August 2008)
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(22
August 2008)
|
|
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(07
August 2008)
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(26
August 2008)
|
|
|
Announcement
Company
releases shares from treasury to satisfy grants made under employee
share
plans.
(08
August 2008)
|
Announcement
Company
releases shares from treasury to satisfy grants made under employee
share
plans.
(27
August 2008)
|
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(08
August 2008)
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(27
August 2008)
|
|
|
Announcement
Company
notified of transactions in respect of the Diageo Share Incentive
Plan and
Messrs Rose, Walsh and those persons discharging managerial responsibility
inform the Company of their interests therein. Dr FB Humer, Mr Stitzer
and
Mr Williams inform the Company of their beneficial interests.
(11
August 2008)
|
Announcement
Preliminary
results announcement.
(28
August 2008)
|
|
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(12
August 2008)
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(28
August 2008)
|
|
|
Announcement
Company
releases shares from treasury to satisfy grants made under employee
share
plans.
(13
August 2008)
|
Announcement
Mr
Walsh informs the Company of his beneficial interest.
(29
August 2008)
|
|
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(13
August 2008)
|
Announcement
Company
releases shares from treasury to satisfy grants made under employee
share
plans.
(29
August 2008)
|
|
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(14
August 2008)
|
Announcement
Company
announces total voting rights.
(29
August 2008)
|
|
|
Announcement
Company
releases shares from treasury to satisfy grants made under employee
share
plans.
(15
August 2008)
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(29
August 2008)
|
|
|
Announcement
Company
purchases its own securities for cancellation through Credit Suisse
Securities (Europe) Limited.
(15
August 2008)
|
FORM
6-K
SECURITIES
AND EXCHANGE COMMISSION
Report
of Foreign Issuer
Pursuant
to Rule 13a-16 or 15d-16 of
the
Securities Exchange Act of 1934
Diageo plc
(Translation
of registrant's name into English)
8
Henrietta Place, London W1G 0NB
(Address
of principal executive offices)
indicate
by check mark whether the registrant files or will file annual reports under
cover Form 20-F or Form 40-F
Form
20-F
x Form
40-F o
indicate
by check mark whether the registrant by furnishing the information contained
in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
o
No
x
If
"Yes"
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):82 o
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorised.
|
Diageo
plc
|
||
|
(Registrant)
|
||
|
Date
6 September 2008
|
By
|
/s/ S Arsenić |
|
Name:
|
S
Arsenić
|
|
|
Title:
|
Assistant
Company Secretary
|
|
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
13:53
01-Aug-08
|
|
|
Number
|
|
81351-8020
|
TO:
Regulatory Information Service
PR
Newswire
RE:
PARAGRAPH 12.6.4 OF THE LISTING RULES
Diageo
plc - Transaction in Own Shares
Diageo
plc (the 'Company') announces that today, it released from treasury 370 ordinary
shares of 28 101/108 pence each in the Company ('Ordinary Shares'), to satisfy
grants made under employee share plans. The average price at which these
Ordinary Shares were released from treasury was 1,013.80 pence per
share.
Following
this release, the Company holds 278,206,145 Ordinary Shares as treasury shares
and the total number of Ordinary Shares in issue (excluding shares held as
treasury shares) is 2,527,096,114.
1
August
2008
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:42
01-Aug-08
|
|
|
Number
|
|
5091A16
|
RNS
Number : 5091A
Diageo
PLC
01
August
2008
Diageo
plc
1 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 625,000 ordinary shares at a price
of 881.19 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:46
04-Aug-08
|
|
|
Number
|
|
6061A16
|
RNS
Number : 6061A
Diageo
PLC
04
August
2008
Diageo
plc
4 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 575,000 ordinary shares at a price
of 893.46 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:41
05-Aug-08
|
|
|
Number
|
7123A16
|
RNS
Number : 7123A
Diageo
PLC
05
August
2008
Diageo
plc
5 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 420,000 ordinary shares at a price
of 919.9 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
14:25
06-Aug-08
|
|
|
Number
|
81424-91BA
|
TO:
Regulatory Information Service
PR
Newswire
RE:
PARAGRAPH 12.6.4 OF THE LISTING RULES
Diageo
plc - Transaction in Own Shares
Diageo
plc (the 'Company') announces that today, it released from treasury 2,560
ordinary shares of 28 101/108 pence each in the Company ('Ordinary Shares'),
to
satisfy grants made under employee share plans. The average price at which
these
Ordinary Shares were released from treasury was 1,013.80 pence per
share.
Following
this release, the Company holds 278,203,585 Ordinary Shares as treasury shares
and the total number of Ordinary Shares in issue (excluding shares held as
treasury shares) is 2,525,478,674.
6
August
2008
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:36
06-Aug-08
|
|
|
Number
|
8035A16
|
RNS
Number : 8035A
Diageo
PLC
06
August
2008
Diageo
plc
6 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 445,000 ordinary shares at a price
of 930.25 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:56
07-Aug-08
|
|
|
Number
|
9147A16
|
RNS
Number : 9147A
Diageo
PLC
07
August
2008
Diageo
plc
7 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 475,000 ordinary shares at a price
of 942.37 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
14:51
08-Aug-08
|
|
|
Number
|
81450-FAED
|
TO:
Regulatory Information Service
PR
Newswire
RE:
PARAGRAPH 12.6.4 OF THE LISTING RULES
Diageo
plc - Transaction in Own Shares
Diageo
plc (the 'Company') announces that today, it released from treasury 2,192
ordinary shares of 28 101/108 pence each in the Company ('Ordinary Shares'),
to
satisfy grants made under employee share plans. The average price at which
these
Ordinary Shares were released from treasury was 1,013.80 pence per
share.
Following
this release, the Company holds 278,201,393 Ordinary Shares as treasury shares
and the total number of Ordinary Shares in issue (excluding shares held as
treasury shares) is 2,524,560,866.
8
August
2008
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:36
08-Aug-08
|
|
|
Number
|
0084B16
|
RNS
Number : 0084B
Diageo
PLC
08
August
2008
Diageo
plc
8 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 150,000 ordinary shares at a price
of 952.75 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Director/PDMR
Shareholding
|
|
|
Released
|
16:06
11-Aug-08
|
|
|
Number
|
81604-9F4E
|
TO:
Regulatory Information Service
PR
Newswire
RE:
PARAGRAPH 3.1.4 OF THE DISCLOSURE AND TRANSPARENCY RULES
The
notifications listed below were all received under Paragraph 3.1.2 of the
Disclosure and Transparency Rules.
Diageo
plc (the 'Company') announces that:
1.
it
received notification on 11 August 2008 of the following allocations of ordinary
shares of 28 101/108 pence each in the Company ('Ordinary Shares') under the
Diageo Share Incentive Plan (the 'Plan'), namely:
(i)
the
following directors of the Company were allocated Ordinary Shares on 11 August
2008 under the Plan, by Diageo Share Ownership Trustees Limited (the
'Trustee'):
|
Name
of Director
|
Number
of Ordinary Shares
|
|
|
N
C
Rose
|
18
|
|
|
P
S
Walsh
|
18
|
(ii)
the
following 'Persons Discharging Managerial Responsibilities' ('PDMR') were
allocated Ordinary Shares on 11 August 2008 under the Plan, by the
Trustee:
|
Name
of PDMR
|
Number
of Ordinary Shares
|
|
|
S
Fletcher
|
18
|
|
|
J
Grover
|
18
|
|
|
A
Morgan
|
18
|
|
|
G
Williams
|
18
|
The
number of Ordinary Shares allocated comprises those purchased on behalf of
the
employee using an amount which the employee has chosen to have deducted from
salary ('Sharepurchase') and those awarded to the employee by the Company
('Sharematch') on the basis of one Sharematch Ordinary Share for every two
Sharepurchase Ordinary Shares.
The
Sharepurchase Ordinary Shares were purchased and the Sharematch Ordinary
Shares
were awarded at a price per share of £9.925.
The
Ordinary Shares are held by the Trustee and in the name of the Trustee.
Sharepurchase Ordinary Shares can normally be sold at any time. Sharematch
Ordinary Shares cannot normally be disposed of for a period of three years
after
the award date.
2.
it
received notification on 11 August 2008 from Dr F B Humer, a director of the
Company, that he has purchased 801 Ordinary Shares on 11 August 2008 under
an
arrangement with the Company, whereby he has agreed to use an amount of
£
8,000
each month, net of tax, from his director's fees to purchase Ordinary Shares.
Dr
F B Humer has agreed to retain the Ordinary Shares while he remains a director
of the Company.
The
Ordinary Shares were purchased at a price per share of £9.925.
3.
it
received notification on 11 August 2008 from Mr H T Stitzer, a director of
the
Company, that he has purchased 100 Ordinary Shares on 11 August 2008 under
an
arrangement with the Company, whereby he has agreed to use an amount
of
£1,000
each month, net of tax, from his director's fees to purchase
Ordinary
Shares.
The
Ordinary Shares were purchased at a price per share of £9.925.
4.
it
received notification on 4 August 2008 of an increase in the interests of Mr
G
Williams, being the receipt by a connected person (David Rhys Williams) of
36
Ordinary Shares on 29 October 2007 in respect of a dividend reinvestment
plan
at a
price per Ordinary Share of £11.019.
As
a
result of the above transactions, interests of directors and PDMRs in the
Company's Ordinary Shares (excluding options, awards under the Company's LTIPs
and interests as potential beneficiaries of the Company's Employee Benefit
Trusts) are as follows:
|
Number
of Ordinary Shares
|
||
|
Dr
F B Humer
|
4,301
|
|
|
N
C
Rose
|
403,556
|
|
|
H
T
Stitzer
|
5,566
|
|
|
P
S
Walsh
|
683,373
|
|
|
Name
of PDMR
|
Number
of Ordinary Shares
|
|
|
S
Fletcher
|
135,524
|
|
|
J
Grover
|
182,776
|
|
|
A
Morgan
|
151,951
|
|
|
G
Williams
|
228,770
(of which 5,812 are held in the form of ADS*)
|
|
P
D
Tunnacliffe
Company
Secretary
11
August
2008
*1
ADS is
the equivalent of 4 Ordinary Shares.
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:35
12-Aug-08
|
|
|
Number
|
1859B16
|
RNS
Number : 1859B
Diageo
PLC
12
August
2008
Diageo
plc
12 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 350,000 ordinary shares at a price
of 991.19 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
15:37
13-Aug-08
|
|
|
Number
|
81536-2DC0
|
TO:
Regulatory Information Service
PR
Newswire
RE:
PARAGRAPH 12.6.4 OF THE LISTING RULES
Diageo
plc - Transaction in Own Shares
Diageo
plc (the 'Company') announces that today, it released from treasury 6,596
ordinary shares of 28 101/108 pence each in the Company ('Ordinary Shares'),
to
satisfy grants made under employee share plans. The average price at which
these
Ordinary Shares were released from treasury was 1,013.80 pence per
share.
Following
this release, the Company holds 278,194,797 Ordinary Shares as treasury shares
and the total number of Ordinary Shares in issue (excluding shares held as
treasury shares) is 2,524,067,462.
13
August
2008
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:42
13-Aug-08
|
|
|
Number
|
2854B16
|
RNS
Number : 2854B
Diageo
PLC
13
August
2008
Diageo
plc
13 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 450,000 ordinary shares at a price
of 987.6 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:49
14-Aug-08
|
|
|
Number
|
3826B16
|
RNS
Number : 3826B
Diageo
PLC
14
August
2008
Diageo
plc
14 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse
Securities (Europe) Limited 550,000 ordinary shares at a price
of 975.47 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
13:22
15-Aug-08
|
|
|
Number
|
81322-E80F
|
TO:
Regulatory Information Service
PR
Newswire
RE:
PARAGRAPH 12.6.4 OF THE LISTING RULES
Diageo
plc - Transaction in Own Shares
Diageo
plc (the 'Company') announces that today, it released from treasury 8,171
ordinary shares of 28 101/108 pence each in the Company ('Ordinary Shares'),
to
satisfy grants made under employee share plans. The average price at which
these
Ordinary Shares were released from treasury was 1,013.80 pence per
share.
Following
this release, the Company holds 278,186,626 Ordinary Shares as treasury shares
and the total number of Ordinary Shares in issue (excluding shares held as
treasury shares) is 2,523,075,633.
15
August
2008
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:45
15-Aug-08
|
|
|
Number
|
4767B16
|
RNS
Number : 4767B
Diageo
PLC
15
August
2008
Diageo
plc
15 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 475,000 ordinary shares at a price
of 991.05 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:39
18-Aug-08
|
|
|
Number
|
5679B16
|
RNS
Number : 5679B
Diageo
PLC
18
August
2008
Diageo
plc
18 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 550,000 ordinary shares at a price
of 982.21 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:43
19-Aug-08
|
|
|
Number
|
6671B16
|
RNS
Number : 6671B
Diageo
PLC
19
August
2008
Diageo
plc
19 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 560,000 ordinary shares at a price
of 983.22 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
14:49
20-Aug-08
|
|
|
Number
|
81448-CA74
|
TO:
Regulatory Information Service
PR
Newswire
RE:
PARAGRAPH 12.6.4 OF THE LISTING RULES
Diageo
plc - Transaction in Own Shares
Diageo
plc (the 'Company') announces that today:
1)
it
cancelled 30,000,000 ordinary shares of 28 101/108 pence each in the Company
('Ordinary Shares') held in treasury.
2)
it
released from treasury 555 Ordinary Shares to satisfy grants made under employee
share plans. The average price at which these Ordinary Shares were released
from
treasury was 1,013.80 pence per share.
Following
this cancellation and release, the Company holds 248,186,071 Ordinary Shares
as
treasury shares and the total number of Ordinary Shares in issue (excluding
shares held as treasury shares) is 2,521,491,188.
20
August
2008
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:54
20-Aug-08
|
|
|
Number
|
7577B16
|
RNS
Number : 7577B
Diageo
PLC
20
August
2008
Diageo
plc
20 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 600,000 ordinary shares at a price
of 972.53 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:57
21-Aug-08
|
|
|
Number
|
8435B16
|
RNS
Number : 8435B
Diageo
PLC
21
August
2008
Diageo
plc
21 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 650,000 ordinary shares at a price
of 967.73 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:43
22-Aug-08
|
|
|
Number
|
9366B16
|
RNS
Number : 9366B
Diageo
PLC
22
August
2008
Diageo
plc
22 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 600,000 ordinary shares at a price
of 983.49 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:44
26-Aug-08
|
|
|
Number
|
0580C16
|
RNS
Number : 0580C
Diageo
PLC
26
August
2008
Diageo
plc
26 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 675,000 ordinary shares at a price
of 975.14 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
14:11
27-Aug-08
|
|
|
Number
|
81411-36A8
|
TO:
Regulatory Information Service
PR
Newswire
RE:
PARAGRAPH 12.6.4 OF THE LISTING RULES
Diageo
plc - Transaction in Own Shares
Diageo
plc (the 'Company') announces that today, it released from treasury 6,744
ordinary shares of 28 101/108 pence each in the Company ('Ordinary Shares'),
to
satisfy grants made under employee share plans. The average price at which
these
Ordinary Shares were released from treasury was 1,013.80 pence per
share.
Following
this release, the Company holds 248,179,327 Ordinary Shares as treasury shares
and the total number of Ordinary Shares in issue (excluding shares held as
treasury shares) is 2,518,972,932.
27
August
2008
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Transaction
in Own Shares
|
|
|
Released
|
16:43
27-Aug-08
|
|
|
Number
|
1511C16
|
RNS
Number : 1511C
Diageo
PLC
27
August
2008
Diageo
plc
27 August 2008
Diageo
plc announces that it has today purchased for cancellation through Credit
Suisse Securities (Europe) Limited 675,000 ordinary shares at a price
of 979.14 pence per share.
This
information is provided by RNS
The
company news service from the London Stock Exchange
END
|
Company
|
Diageo
PLC
|
|
|
TIDM
|
DGE
|
|
|
Headline
|
Final
Results
|
|
|
Released
|
07:00
28-Aug-08
|
|
|
Number
|
1703C07
|
RNS
Number : 1703C
Diageo
PLC
28
August
2008
 |
Preliminary
results for the year ended 30 June
2008
|
Diageo
reports another year of strong organic growth: net sales up 7%, operating
profit
up 9% and underlying eps up 11%2
Results
at a glance
|
2008
|
|
2007
|
|
Reported
movement
|
|
Organic
movement
|
||||||||||
|
Volume
in millions of equivalent units
|
145.0
|
141.3
|
3
|
%
|
3
|
%
|
||||||||||
|
Net
sales
|
£
million
|
8,090
|
7,481
|
8
|
%
|
7
|
%
|
|||||||||
|
Operating
profit before exceptional items
|
£
million
|
2,304
|
2,119
|
9
|
%
|
9
|
%
|
|||||||||
|
Operating
profit
|
£
million
|
2,226
|
2,159
|
3
|
%
|
9
|
%
|
|||||||||
|
Profit
attributable to parent company’s equity shareholders 1
|
£
million
|
1,521
|
1,489
|
2
|
%
|
|||||||||||
|
Basic
eps 1
|
pence
|
59.3
|
55.4
|
7
|
%
|
|||||||||||
| · |
Marketing
spend increased 5%. Excluding Korea, marketing spend on non ready
to drink
brands increased 8%
|
| · |
Operating
exceptional charge of £78 million in the year ended 30 June 2008 in
respect of the restructuring of the Irish brewing
operations
|
| · |
Interest
charge increased £90 million to £341
million
|
| · |
eps
before exceptional items 2
increased from 54.8 pence in 2007 to 60.6 pence in 2008, which
excluding
acquisitions, disposals and exchange is an 11% increase (underlying
eps)
|
| · |
Return
on invested capital increased 50 basis points to
14.9%
|
| · |
Free
cash flow of £1,252 million
|
| · |
Recommended
full year dividend per share increase of 5% to 34.35
pence
|
| · |
£1.9
billion returned to shareholders: £857 million in dividends and £1.0
billion of share buybacks
|
1
For
year
ended 30 June 2008 tax rate of 24.9%. For year ended 30 June 2007 tax rate
of
32.4%. Discontinued operations gain after tax for the year ended 30 June
2008 of
£26 million, for the year ended 30 June 2007 of £139 million.
2
Using an
underlying effective tax rate of 24.5% in 2008 and 25.1% in 2007.
Unless
otherwise stated in this announcement: net sales are sales after deducting
excise duties; percentage movements are organic movements; commentary refers
to
organic movements and share refers to value share. See page 28 for additional
information for shareholders and an explanation of non-GAAP measures including
the reconciliation of basic eps to underlying eps.
Paul
Walsh, Chief Executive of Diageo, commenting on year ended 30 June 2008 said:
“The
combination of Diageo’s leading brands and our global reach has delivered
another year of strong organic growth with net sales up 7% and operating
profit
up 9%.
The
main
drivers of top and bottom line growth were International, where scotch in
Latin
America and beer in Africa drove net sales growth of 16%, and North America,
where growth in the priority brands drove a 5% increase in net sales. In
Europe,
we delivered better performance than last year, with net sales up 3% from
growth
in Eastern Europe, Russia and Great Britain. In Asia Pacific, even though
overall performance was impacted by the loss of our Korean licence for part
of
the year, we grew the top line 2% as we gained share in China and expanded
in
India and the markets of South East Asia.
We
have
continued to invest behind great campaigns and this year has seen our global
priority brands again extend their leadership positions. Smirnoff grew across
all markets posting 8% volume and 10% net sales growth. Johnnie Walker grew
net
sales by 12% and now has annual net sales of over £1 billion. The return to
growth of JεB
in
Europe together with its strong performance in International delivered 9%
net
sales growth. Guinness grew net sales 6% with over 50% of that growth coming
from Africa, where the brand grew 13%. Our other beer brands in Africa grew
net
sales 25%.
Price
rises and mix improvement covered increased input costs and gross margin
has
improved. We have benefited from marketing spend efficiencies and scale in
our
global brands and we have reduced marketing spend in ready to drink to maintain
the profitability of that segment. Overall we have delivered a further 70
basis
points organic improvement in operating margin.
During
the year we added Ketel One vodka, Zacapa rum and Rosenblum Cellars wine
to our
brand range. These are already successful brands and we intend to build on
that
success.
Our
financial results in recent years have mirrored the consistent improvement
we
have achieved in our business and we finish the year with a stronger business.
We enter the new financial year facing slowing global GDP growth and more
challenging global economic trends, but given the strength and diversity
of
Diageo’s business we believe we can deliver organic operating profit growth for
the coming year within our range of 7% to 9%. Together with the expected
positive impact of exchange rate movements on reported results and our share
buyback programme this means we expect to deliver double-digit reported eps
growth.”
Regional
summary
North
America - Strong performance of priority and reserve brands continued to
drive
growth
| · |
Volume
up 2%
|
| · |
Net
sales up 5%
|
| · |
Marketing
spend up 3%
|
| · |
Operating
profit up 10%
|
North
America’s performance reflects strong net sales growth with spirits up 7%, beer
up 6% and wine up 12%, partially offset by a 10% decrease in net sales of
ready
to drink. Strong volume growth in priority and reserve brands offset weakness
in
value brands. Smirnoff, Johnnie Walker, Captain Morgan, Crown Royal, Guinness,
Sterling Vineyards and Chalone wines were again the performance leaders.
Price
increases and strong growth of the reserve brands Cîroc, Don Julio and Johnnie
Walker Blue Label drove net sales growth. Marketing excluding ready to drink
was
up 5% with strong investment behind the reserve brands. Diageo’s share of US
spirits was broadly maintained at 28.3 percentage points, with share of priority
spirits brands up 0.3 percentage points.
Europe
- Improved performance through focused investment in key growth
drivers
| · |
Volume
up 2%
|
| · |
Net
sales up 3%
|
| · |
Marketing
spend up 6%
|
| · |
Operating
profit up 3%
|
In
Europe
performance improved against last year driven by growth in spirits, with
net
sales up 5% and the continued outperformance of Guinness against the beer
categories in Ireland and Great Britain. Increased focus behind the off trade
in
Great Britain, behind premium scotch brands in Continental Europe and further
investment in Eastern Europe and Russia drove the growth in spirits in Europe.
Smirnoff and Johnnie Walker performed particularly strongly with net sales
up 5%
and 11% respectively and JεB
returned
to growth in the region supported by the ‘Start a Party’ campaign. Ready to
drink however declined by a further 13%. Marketing spend increased more strongly
than net sales with increased spend on the priority brands in Great Britain
and
Ireland and behind Johnnie Walker in Spain.
International
- Strong performance of beer and scotch drove double-digit growth in both
net
sales and operating profit
| · |
Volume
up 5%
|
| · |
Net
sales up 16%
|
| · |
Marketing
spend up 16%
|
| · |
Operating
profit up 19%
|
International
continues to drive overall Diageo performance as scotch in Latin America,
South
Africa and Global Travel and Middle East grew net sales 11%, 24% and 20%
respectively, and Diageo’s beer brands in Africa continued their strong growth
with net sales up 19%. Growth in International is becoming increasingly broad
based and Smirnoff, Baileys, Cacique and JεB
all
grew as a result of increased consumer demand and marketing spend, which
grew
strongly again behind successful marketing campaigns. Price increases and
mix
improvements across most of Diageo’s brands in all hubs within International
resulted in strong operating profit growth.
Asia
Pacific - Investments in market infrastructure and disruption in Korea impacted
performance
| · |
Volume
up 2%
|
| · |
Net
sales up 2%
|
| · |
Marketing
spend down 6%
|
| · |
Operating
profit down 12%
|
The
overall performance in Asia Pacific was affected by a number of factors
including the loss of the import licence in Korea for part of the year.
Investment continued to support the expansion of the regional infrastructure
with the increase in locally bottled brands in India and the opening up of
new
markets such as Vietnam and the focus on priority brands in markets such
as
Australia. Diageo has maintained market leading positions and continued to
grow
share and awareness in the key scotch markets of the region such as China
and
Korea. Smirnoff also continued to grow its leadership of the vodka category
in
the region with growth in net sales of 29% and share gains in key markets
such
as India and Australia.
Financial
| · |
The
deficit in respect of post employment plans reduced by £11 million from
£419 million at 30 June 2007 to £408 million at 30 June 2008. The
reduction in equity valuations in the year was offset by the increase
in
value of interest rates and inflation swaps between 30 June 2007
and 30
June 2008. In the year ended 30 June 2008 finance income under
IAS 19 was
£46 million. In the year ending 30 June 2009, finance income under
IAS 19
is expected to be negligible.
|
| · |
In
the year ended 30 June 2008, exchange rate movements reduced operating
profit by £5 million and increased the net interest charge by £1
million.
|
| · |
For
the year ending 30 June 2009, at current exchange rates, foreign
exchange
movements (excluding the exchange impact under IAS 39) are forecast
to
increase operating profit by £60 million and increase the interest charge
by £15 million.
|
Brand
summary
|
Volume
movement*
%
|
Reported
net
sales
movement
%
|
Organic
net
sales
movement
%
|
||||||||
|
Global
priority brands
|
4
|
8
|
6
|
|||||||
|
Local
priority brands
|
2
|
10
|
4
|
|||||||
|
Category
brands
|
1
|
8
|
10
|
|||||||
|
Total
|
3
|
8
|
7
|
|||||||
|
Key
spirits brands**:
|
||||||||||
|
Smirnoff
|
8
|
12
|
10
|
|||||||
|
Johnnie
Walker
|
5
|
14
|
12
|
|||||||
|
Captain
Morgan
|
8
|
10
|
13
|
|||||||
|
Baileys
|
1
|
6
|
3
|
|||||||
|
JεB
|
5
|
15
|
9
|
|||||||
|
Jose
Cuervo
|
(4
|
)
|
(5
|
)
|
(3
|
)
|
||||
|
Tanqueray
|
1
|
2
|
4
|
|||||||
|
Crown
Royal – North America
|
5
|
5
|
9
|
|||||||
|
Buchanan’s
– International
|
(2
|
)
|
15
|
5
|
||||||
|
Windsor
– Asia Pacific
|
7
|
(17
|
)
|
(12
|
)
|
|||||
|
Guinness
|
1
|
9
|
6
|
|||||||
|
Ready
to drink
|
(7
|
)
|
(4
|
)
|
(5
|
)
|
||||
*
Reported and organic volume movements are the same for all brands in all
regions
**
Spirits brands excluding ready to drink.
Focus
on
the global priority brands drove almost two thirds of total net sales growth.
Smirnoff performed strongly across all regions with new campaigns and the
launch
of Smirnoff Black in a number of markets driving volume growth. Price increases
across most markets resulted in net sales growth.
The
International region together with Eastern Europe and Russia led the growth
in
Johnnie Walker. The strong performance of Johnnie Walker Black Label, Johnnie
Walker super deluxe labels and price increases in key markets drove price/mix
improvement of 7 percentage points.
Captain
Morgan sustained its strong performance from the first half. While the key
driver of growth is the brand’s performance in North America, the brand is now
delivering double-digit net sales growth in each region.
Strong
growth in Great Britain, Russia and Latin America drove the growth in Baileys.
In Great Britain and Russia Baileys Original Irish Cream performed strongly,
while in Latin America Baileys flavours continued to deliver double-digit
net
sales growth supporting further growth in Baileys Original Irish Cream. Overall
results were constrained by lower volume on Baileys flavours in all regions
except International as the brand lapped the launch in fiscal 2007.
JεB
grew
volume across all regions, in many markets supported by the success of the
global ‘Start a Party’ campaign. Price increases in key markets resulted in
improved price/mix driving net sales growth.
While
Jose Cuervo grew net sales in Latin America and Europe, Jose Cuervo’s
performance continued to be affected by the growth of the ultra premium tequila
segment in North America. Price increases and more premium launches have
driven
net sales growth in Latin America and Europe.
Tanqueray
increased net sales in all regions. North America remained the main contributor
to growth, where Tanqueray outperformed the gin category, driven by the
continued growth of Tanqueray Rangpur. A price increase on the core brand
in
North America drove price/mix improvement.
Crown
Royal continued to take share in North America and net sales grew benefiting
from price increases and successful innovations.
Price
increases on Buchanan’s, in line with Diageo’s overall scotch pricing strategy,
impacted volume but drove net sales growth.
Windsor's
performance reflected the loss of licence in Korea for part of the year which
reduced net sales per case while Diageo Korea was operating through a third
party distributor from July 2007 to the beginning of March 2008.
Growth
in
Guinness was fuelled by double digit net sales growth in International and
outperformance against the beer categories in Ireland and Great Britain as
a
result of successful advertising campaigns. Net sales grew ahead of volume
growth driven by price increases in key markets.
Crown
Royal, Buchanan’s and Windsor were the key local priority brands. In addition
Malta Guinness showed strong net sales growth as a result of successful
marketing campaigns, a new product launch and the development of the off
trade
in the key markets of Nigeria and Ghana.
Net
sales
growth of category brands was driven by the success of our global scotch
strategy, namely a focus on net sales growth not volume growth. Price/mix
improvement in scotch combined with double-digit growth of beer brands in
Africa
and growth of reserve and premium brands such as Cîroc, Don Julio and the
Classic Malts led to 9 percentage points of price/mix improvement.
Ready
to
drink remains challenging as expected and net sales were down 5% driven by
North
America and Europe. Strong performance of Smirnoff ready to drink in
International with growth in Nigeria, South Africa, Brazil and Venezuela
with
the introduction of new flavours and price increases drove 13% net sales
growth
in the region which partially offset the impact of the segment’s decline in
North America and Europe. Diageo’s ready to drink brands performed strongly in
Australia prior to the 70% duty increase which was implemented on the ready
to
drink segment at the end of April 2008. Since the increased duty was introduced,
net sales of ready to drink have declined, partially offset by net sales
growth
in core spirits.
Management
Reports
The
Annual Report for the year ended 30 June 2008, which will be published on
15
September 2008, will comprise the Annual Financial Report which Diageo is
required to publish under the EU Transparency Directive for the financial
year
which began on 1 July 2007. The trading update to be issued at the time of
the
AGM on 15 October 2008 will form the first interim management statement for
the
year ending 30 June 2009.
BUSINESS
REVIEW
For
the year ended 30 June 2008
OPERATING
REVIEW – analysis by business area
North
America
Summary:
| · |
Growth
driven by priority and reserve
brands
|
| · |
Net
sales growth of spirits up 7%, wine up 12% and beer up 6%
|
| · |
The
majority of the priority spirits, wine and beer brands gained
share
|
| · |
Share
of US spirits broadly maintained at 28.3 percentage points despite
share
loss in value brands as priority brands gained 0.3 percentage points
of
share
|
| · |
Ready
to drink segment continued to be challenging with net sales down
10%
|
Key
measures:
|
|
2008
|
2007
|
Reported
movement
|
Organic
movement
|
|||||||||
|
£
million
|
£
million
|
%
|
%
|
||||||||||
|
Volume
|
2
|
2
|
|||||||||||
|
Net
sales
|
2,523
|
2,472
|
2
|
5
|
|||||||||
|
Marketing
spend
|
366
|
364
|
1
|
3
|
|||||||||
|
Operating
profit
|
907
|
850
|
7
|
10
|
|||||||||
Reported
performance:
Net
sales
were £2,523 million in the year ended 30 June 2008 up by £51 million from £2,472
million in the prior year. Reported operating profit increased by £57 million to
£907 million in the year ended 30 June 2008.
Organic
performance:
The
weighted average exchange rate used to translate US dollar sales and profit
moved from £1 = $1.93 in the year ended 30 June 2007 to £1 = $2.01 in the year
ended 30 June 2008. Exchange rate impacts decreased net sales by £73 million.
Acquisitions increased net sales by £6 million, the loss of distribution rights
for certain champagne brands decreased net sales by £6 million and there was an
organic increase of £124 million. Exchange rate impacts reduced operating profit
by £27 million and transfers of costs between regions increased operating profit
by £4 million. Acquisitions and the loss of distribution rights for certain
champagne brands decreased operating profit by £2 million and there was an
organic increase in operating profit of £82 million.
Brand
performance:
|
Volume
movement
|
Reported
net sales
movement
|
Organic
net sales
movement
|
||||||||
|
%
|
%
|
%
|
||||||||
|
Global
priority brands
|
2
|
-
|
3
|
|||||||
|
Local
priority brands
|
3
|
5
|
8
|
|||||||
|
Category
brands
|
1
|
6
|
10
|
|||||||
|
Total
|
2
|
2
|
5
|
|||||||
|
Key
spirits brands*:
|
||||||||||
|
Smirnoff
|
8
|
9
|
12
|
|||||||
|
Johnnie
Walker
|
5
|
6
|
10
|
|||||||
|
Captain
Morgan
|
7
|
9
|
12
|
|||||||
|
Baileys
|
(6
|
)
|
(5
|
)
|
(3
|
)
|
||||
|
Jose
Cuervo
|
(5
|
)
|
(7
|
)
|
(4
|
)
|
||||
|
Tanqueray
|
-
|
(1
|
)
|
3
|
||||||
|
Crown
Royal
|
5
|
5
|
9
|
|||||||
|
Guinness
|
5
|
4
|
7
|
|||||||
|
Ready
to drink
|
(13
|
)
|
(13
|
)
|
(10
|
)
|
||||
*
Spirits
brands excluding ready to drink
Overall
volume growth was driven by the priority brands. Price increases on 40% of
spirits volume in the US drove net sales growth despite negative mix within
the
global priority brands due to the strong growth of Smirnoff and Captain Morgan.
The continued challenges in the ready to drink segment reduced overall volume
growth by 1 percentage point and net sales growth by 2 percentage points.
Marketing spend grew 3% as investment was realigned behind the priority and
reserve brands and away from ready to drink. Marketing excluding ready to drink
grew 5%. Diageo grew share on the majority of its priority spirits and wine
brands. Loss of share in the value brands resulted in overall share of US
spirits being broadly maintained during the year at 28.3 percentage points,
with
share of priority spirits brands up 0.3 percentage points.
In
Canada
share gains of 1.0 percentage points were delivered in the spirits category.
Volume grew 6% driven by the global priority brands and net sales were up 9%
as
price increases were implemented.
Smirnoff
continued its strong performance from the first half and grew volume 8%. Price
increases were taken in key markets driving net sales growth of 12% and share
grew 0.2 percentage points. Growth of Smirnoff Red was driven by two successful
advertising campaigns, the ‘Diamonds’ programme and ‘Vladimir’s Journey’, which
reinforced the quality image of the brand and its heritage. Smirnoff flavours
were driven by the launch of three new flavours: Blueberry, Passion Fruit and
White Grape and the ‘Simple Drinks’ campaign, which taught consumers simple ways
of making drinks at home with flavoured vodka.
Johnnie
Walker also grew ahead of the category with volume up 5% and net sales up 10%
driven by Johnnie Walker Black Label and the super deluxe labels, leading to
share growth of 1.2 percentage points. Price increases were taken across the
Johnnie Walker range. Expansion of the Johnnie Walker Blue Label bottle
engraving programme and the distribution of Johnnie Walker Blue Label King
George V drove growth of the super deluxe labels and improved mix.
Captain
Morgan volume was up 7% and net sales were up 12% driven by Captain Morgan
Original Spiced rum which gained a further 0.6 percentage points of share
despite the launch of two competitor brands in the rum category. Successful
marketing campaigns around holidays and the ‘Pose-off’ contest continued to
build this iconic brand.
The
overall Baileys results were constrained by lower volume in Baileys flavours,
which lapped the launch in fiscal 2007. Baileys Original Irish Cream
outperformed the category with volume up 3% and net sales up 7% as price
increases were taken across most of its markets. Strong year round marketing
support of the brand along with summer programming for Baileys ‘Shiver’ helped
drive the growth.
The
release of Jose Cuervo Platino in the first half of 2008 to good consumer
response is one of the ways Jose Cuervo is positioning itself in an increasingly
premiumising category. Jose Cuervo Especial experienced heavy pricing
competition and volume decreased 5% as the Jose Cuervo brand maintained price
and in some states increased it, to support the premiumisation of the brand.
Marketing spend on Jose Cuervo was weighted toward the summer season and
promoted the mixability of the brand.
Tanqueray
again outperformed a declining gin category gaining 1.6 percentage points of
share driven by the continued growth of Tanqueray Rangpur.
Crown
Royal continued to take share in the North American whiskey category, up 0.4
percentage points. Volume grew 5% and price increases drove net sales up 9%.
Crown Royal Cask 16, launched in October 2007, helped to drive mix. The brand
was supported by two off trade promotions, the ‘Legend of the Purple Bag’ and
‘I’d Rather Be’ as well as its continued sponsorship of NASCAR.
Guinness
showed good growth against the import segment which was broadly flat, with
volumes up 5% driven by keg sales and Guinness Extra Stout. Net sales grew
7% as
price increases were implemented. The brand was supported by a new advertising
campaign, ‘Guinness Alive Inside’.
The
local
priority brands grew volume 3% and net sales were up 8% benefiting from price
increases and mix improvement from the higher margin spirits brands. Crown
Royal
led this performance. Buchanan’s volume was up 18% and net sales up 24% and
Seagram’s 7 Crown and Seagram’s VO grew net sales 4% and 1% respectively on flat
volumes. Local priority wines grew volume 6% and net sales were up 8% driven
by
strong performance of Sterling Vineyards and Chalone and price/mix improvement
in Beaulieu Vineyards.
Within
the category brands, mix improvement was driven by strong growth of Don Julio
volume up 19% and net sales up 22%, the Classic Malts volume up 14% and net
sales up 19%, Bushmills volume up 13% and net sales up 16% and Cîroc volume up
89% and net sales up 90% on strong marketing and distribution gains. Successful
marketing of Smithwick’s Irish heritage delivered strong growth albeit off a low
base with volume up 19% and net sales up 20% following national price increases.
This offset net sales declines among the value brands such as Gordon’s vodka,
net sales down 10% and Gordon’s Gin, down 1%.
The
ready
to drink segment continued to decline with volume down 13% and net sales down
10%. This was driven by progressive adult beverages, led by the decline of
Smirnoff Ice. Smirnoff Ice Light, Smirnoff Ice Strawberry Acai and Captain
Morgan Parrot Bay Mojito were introduced in the second half of the year to
help
refresh the segment. The decline in progressive adult beverages was partially
offset by the success of the recently launched Smirnoff cocktail line which
has
performed very well to date. Consequently marketing spend has been reduced
on
progressive adult beverages and support provided to the spirit based
cocktails.
On
9 June
2008, Diageo completed the acquisition of a 50% equity stake in the newly formed
company Ketel One Worldwide BV, which holds the exclusive and perpetual rights
to market, sell and distribute Ketel One vodka products.
Europe
Summary:
|
·
|
Eastern
Europe and Russia contributed over two thirds of net sales
growth
|
|
·
|
Strong
performance in GB generated nearly 20% of the region’s
growth
|
|
·
|
Guinness’
outperformance against the beer categories in Great Britain and Ireland
continued
|
|
·
|
Strong
performance of JεB
with net sales growth driven by price increases in Spain and volume
growth
in Continental Europe
|
|
·
|
Price
increases implemented across the
region
|
Key
measures:
|
|
2008
|
2007
|
Reported
movement
|
Organic
movement
|
|||||||||
|
£ million
|
£ million
|
%
|
%
|
||||||||||
|
Volume
|
2
|
2
|
|||||||||||
|
Net
sales
|
2,630
|
2,427
|
8
|
3
|
|||||||||
|
Marketing
spend
|
438
|
391
|
12
|
6
|
|||||||||
|
Operating
profit
|
720
|
723
|
-
|
3
|
|||||||||
Reported
performance:
Net
sales
were £2,630 million in the year ended 30 June 2008 up by £203 million from
£2,427 million in the prior year. Reported operating profit decreased by £3
million to £720 million in the year ended 30 June 2008. Exceptional costs of £78
million in respect of restructuring costs for the Irish brewing operations
are
included within operating expenses in the year ended 30 June 2008. Reported
operating profit excluding exceptional items increased by £75 million to £798
million in the year ended 30 June 2008.
Organic
performance:
The
weighted average exchange rate used to translate euro sales and profit moved
from £1 = €1.48 in the year ended 30 June 2007 to £1 = €1.36 in the year ended
30 June 2008. Exchange rate impacts increased net sales by £128 million.
Acquisitions increased net sales by £1 million, transfers between regions
decreased net sales by £1 million and there was an organic increase of £75
million. Exchange rate impacts increased operating profit by £47 million.
Transfer of costs between regions increased operating profit by £6 million,
exceptional costs decreased operating profit by £78 million and there was an
organic increase in operating profit of £22 million.
Brand
performance:
|
Volume
movement
|
Reported
net sales
movement
|
Organic
net sales
movement
|
||||||||
|
%
|
%
|
%
|
||||||||
|
Global
priority brands
|
3
|
10
|
4
|
|||||||
|
Local
priority brands
|
(3
|
)
|
3
|
(2
|
)
|
|||||
|
Category
brands
|
-
|
9
|
4
|
|||||||
|
Total
|
2
|
8
|
3
|
|||||||
|
Key
spirits brands*:
|
||||||||||
|
Smirnoff
|
6
|
9
|
5
|
|||||||
|
Johnnie
Walker
|
6
|
19
|
11
|
|||||||
|
Baileys
|
4
|
11
|
4
|
|||||||
|
JεB
|
1
|
14
|
6
|
|||||||
|
Guinness
|
-
|
7
|
3
|
|||||||
|
Ready
to drink
|
(11
|
)
|
(10
|
)
|
(13
|
)
|
||||
*
Spirits
brands excluding ready to drink
Strong
volume growth in Great Britain, driven by Smirnoff and Baileys, and in Eastern
Europe and Russia, was partially offset by continued volume weakness in Iberia.
Price increases across Europe, combined with focus on the premium spirit brands,
offset negative market mix from the rapid growth in Eastern Europe and resulted
in net sales up 3%.
Global
priority brands were the key growth driver with volume up 3% and net sales
up
4%. Johnnie Walker was the main contributor with double-digit net sales growth.
JεB,
Smirnoff and Baileys also performed strongly and Guinness continued its positive
performance from the first half, delivering net sales growth for the full
year.
Smirnoff
volume was up 6% and net sales were up 5%. This performance was driven by Great
Britain where new advertising campaigns and a successful Christmas trading
period drove volume up 10%. Net sales were up 8% as a simplified promotional
strategy led to higher volume but an increased percentage of that volume being
sold on promotion. Within Continental Europe negative market mix generated
by
the growth of Smirnoff Vladimir in Poland was partially offset by price
increases and the growth of Smirnoff Black as it was seeded across a number
of
markets.
Johnnie
Walker volume was up 6% driven by growth in Eastern Europe and Russia both
of
which were up over 30%, albeit off a small base. Consistent advertising has
increased awareness and the status of the brand in these markets. This growth
was partially offset by declines in Iberia and Greece. Net sales were up 11%
as
a result of price increases and mix improvement as investment focused on Johnnie
Walker Black Label and Johnnie Walker super deluxe labels.
Baileys
returned to growth in Great Britain and delivered strong growth in Russia,
resulting in overall volume and net sales up 4%. In Great Britain a return
to
advertising on television and a revised promotional strategy at Christmas drove
the brand back to growth. In Russia Baileys continued to demonstrate great
potential with net sales growth of 37%, albeit off a small base. In Continental
Europe net sales were flat as the brand lapped the Baileys flavours launch
in
the prior year.
JεB
returned to growth in Europe supported by the ‘Start a Party’ advertising
campaign and expansion across Continental Europe. In Iberia category volume
declines worsened, however JεB
delivered net sales growth and share gains as further price increases were
implemented. Within Continental Europe, France and Eastern Europe were the
main
growth drivers. In France a price increase was implemented and JεB
gained
share. In Romania and Bulgaria, the brand’s biggest markets in Eastern Europe,
the ‘Start a Party’ campaign has delivered strong growth.
Guinness
volume was flat and net sales were up 3% as the brand continued to outperform
the beer categories in both Ireland and Great Britain. This was the result
of
new advertising campaigns, focus on quality and the cooler summer of 2007.
In
Ireland net sales were up 2% and share gains were made in both the on and off
trade, driving an overall share gain for Diageo Ireland in the beer category.
In
Great Britain the beer category worsened in the second half. However Guinness
net sales were up 2% as it continued to outperform the category, particularly
in
the on trade where it recorded its highest ever share. Volume was up 3% in
the
rest of Europe as a result of growth across a number of markets which combined
with price increases led to net sales up 6%.
Local
priority brand volume was down 3% and net sales were down 2%. This was driven
by
beer in Ireland and Cacique in Spain. Local beer brands in Ireland declined,
impacted by the continued decline of the beer category in the on trade and
the
decision to reduce the volume sold on promotion in the off trade. Carlsberg
however delivered net sales growth as a result of distribution gains and a
new
advertising campaign and gained share. In Spain lower volumes of Cacique were
partially offset by price increases.
Category
brands delivered price/mix improvement with volume flat and net sales up 4%,
as
a result of price increases on category scotch brands and the strategy to drive
net sales from wine through a change in promotional strategy and mix
improvement.
Ready
to
drink continued to decline driven by Smirnoff Ice in Great Britain. The segment
now accounts for less than 5% of net sales in the region.
International
Summary:
| · |
Continued
double-digit net sales growth in Latin America, Africa and Global
Travel
and Middle East driven by strong price/mix improvements across categories
and markets
|
| · |
In
Africa strong performance of beer brands with net sales growth of
19%
combined with continued net sales growth of spirits brands up 21%
drove
very strong growth
|
| · |
Volume
growth across the region combined with price increases drove strong
net
sales growth of 14% in scotch
|
| · |
Increased
focus on categories outside of scotch and beer, such as vodka and
rum,
drove broader based growth
|
Key
measures:
|
2008
|
2007
|
Reported
movement
|
Organic
movement
|
||||||||||
|
£ million
|
£ million
|
%
|
%
|
||||||||||
|
Volume
|
5
|
5
|
|||||||||||
|
Net
sales
|
1,971
|
1,667
|
18
|
16
|
|||||||||
|
Marketing
spend
|
244
|
208
|
17
|
16
|
|||||||||
|
Operating
profit
|
593
|
499
|
19
|
19
|
|||||||||
Reported
performance:
Net
sales
were £1,971 million in the year ended 30 June 2008, up £304 million from £1,667
million in the prior year. Reported operating profit increased by £94 million
from £499 million to £593 million in the year ended 30 June 2008.
Organic
performance:
Exchange
rate impacts increased net sales by £37 million. Transfers between regions
increased net sales by £1 million and there was an organic increase in net sales
of £266 million. Exchange rate impacts increased operating profit by £2 million
and transfers of costs between regions reduced operating profit by £5 million.
Acquisitions increased operating profit by £1 million and there was an organic
increase in operating profit of £96 million.
Brand
performance:
|
Volume
movement
|
Reported
net
sales
movement
|
Organic
net
sales
movement
|
||||||||
|
%
|
%
|
%
|
||||||||
|
Global
priority brands
|
6
|
17
|
15
|
|||||||
|
Local
priority brands
|
4
|
20
|
15
|
|||||||
|
Category
brands
|
4
|
19
|
17
|
|||||||
|
Total
|
5
|
18
|
16
|
|||||||
|
Key
spirits brands*:
|
||||||||||
|
Smirnoff
|
7
|
18
|
15
|
|||||||
|
Johnnie
Walker
|
8
|
21
|
18
|
|||||||
|
Baileys
|
1
|
9
|
6
|
|||||||
|
Buchanan’s
|
(2
|
)
|
15
|
5
|
||||||
|
Guinness
|
2
|
15
|
13
|
|||||||
|
Ready
to drink
|
3
|
12
|
13
|
|||||||
*
Spirits
brands excluding ready to drink
Across
global priority, local priority and category brands net sales growth outpaced
volume growth driven by price increases. Global priority brands are the drivers
of the International business and net sales were up 15% with Johnnie Walker,
Guinness and Smirnoff the main contributors.
Smirnoff
volume grew 7%, driven mostly by Brazil and South Africa where successful
marketing campaigns led to further share gains. Price increases in key markets
led to strong price/mix improvement, resulting in 15% net sales
growth.
Johnnie
Walker delivered 8% volume growth, mostly driven by South Africa, Mexico and
Global Travel and Middle East, fuelled by strong trade support and successful
advertising. Net sales increased by 18% as a result of price increases
implemented across the region and stronger growth in more profitable channels
in
Latin America and of higher margin brands in Africa and Global Travel and Middle
East.
Baileys
volume grew 1% and net sales were up 6%, driven by premium priced gift packs
combined with brand promotion in Global Travel and the launch of Baileys
flavours in Mexico and Central America.
Buchanan’s
is the key local priority brand in International. Buchanan’s strategy was to
increase price in all key markets and this impacted volume while increasing
net
sales. Volume decreased 2% while improved price/mix drove net sales growth
of
5%. The main growth came from Mexico driven by strong on trade activities and
successful media campaigns.
Guinness
volume increased 2%, with strong growth coming from Cameroon and East Africa
driven by the ‘Guinness Greatness’ campaign and economic expansion. Net sales
for the region were up 13% as a result of price increases and a benefit from
changes in excise duty in some markets.
Increased
focus on the ‘Start a Party’ campaign for JεB
led to
strong growth with volume up 13% and net sales up 21%. The key markets were
Mexico, South Africa and Global Travel and Middle East, where price increases
drove net sales growth.
Local
priority brands delivered 4% volume growth and 15% net sales growth mostly
driven by improved price/mix across Buchanan’s and beer. Tusker and Pilsner
continued to show double-digit net sales growth, driven by price increases
and
wider availability. As a result of successful marketing campaigns and the
development of the off trade in key markets Nigeria and Ghana, Malta Guinness
also showed double-digit net sales growth.
Category
brands volume increased 4% and net sales increased 17%. Volume growth was driven
by double-digit growth of beer brands in Africa. Significant price increases
on
value and standard scotch brands in Latin America resulted in volume decline,
but strong price/mix improvement drove net sales growth.
Ready
to
drink volume grew 3%, mainly driven by Smirnoff ready to drink brands, in
particular the introduction of new flavours in Brazil and the continued success
of Smirnoff Ice in Brazil and Nigeria and Smirnoff ready to drink in South
Africa. Net sales grew 13% mainly as a result of price increases in South
Africa, Venezuela and Brazil.
In
Diageo’s major African markets net sales growth was in double-digits, with the
main growth coming from East Africa, Nigeria and South Africa, where net sales
were up 23%, 14% and 20% respectively.
In
East
Africa net sales growth was driven by strategic price increases in the key
market of Kenya, significantly improving price/mix, and effective marketing
on
Guinness and Tusker increasing visibility and driving volume growth.
In
South
Africa Diageo’s scotch brands and Smirnoff benefited from price increases and,
supported by successful marketing campaigns, continued to outperform the
category. The introduction of Foundry cider contributed to growth and gave
access to a profitable and growing cider category.
In
Ghana
net sales grew 32%, driven by price increases across all brands. The largest
volume growth came from lagers, malt and stout, as a result of successful
marketing investments and expansion in the off trade. In Nigeria net sales
increased 14%, driven by a re-launch of Malta Guinness and price increases
across all brands. Net sales growth was 9% in Cameroon, as a result of price
increases on main brands combined with an improved route to
market.
Latin
America delivered double-digit net sales growth, with main growth coming from
Mexico and Brazil as a result of price increases in key brands and strong
marketing campaigns.
In
Venezuela and Mexico prices were increased across brands. In Venezuela volume
was down 14% as price increases were implemented as a result of the economic
situation, however net sales were up 4% as a result of improved price/mix and
strong performance in rum. Mexico’s volume grew 26%, as a result of continued
scotch category growth led by Diageo, combined with share gains. Mexico’s net
sales grew 31% driven by premiumisation and price increases.
Net
sales
grew 10% in the Brazil, Uruguay and Paraguay hub with scotch and Smirnoff the
key drivers. Successful marketing campaigns on scotch and Smirnoff combined
with
continued growth in the ready to drink segment led to volume increases.
Increased prices and favourable channel and product mix improved price/mix
driving net sales growth.
In
Global
Travel and Middle East volume grew 2% and net sales grew 16%. Volume growth
was
driven by strong performance of scotch, especially Johnnie Walker Black Label
and Johnnie Walker super deluxe labels, as a result of gifting pack promotions
and successful advertising campaigns. Strong price/mix improvements, driven
by
price increases combined with favourable mix on scotch, resulted in double-digit
net sales growth.
Asia
Pacific
Summary:
|
·
|
Continued
investment in regional infrastructure to support future growth
objectives
|
|
·
|
Net
sales growth in the region driven by global priority
brands
|
|
·
|
India
route to market strengthened as a result of continued growth of locally
produced brands
|
|
·
|
Further
share gains in scotch in China
|
|
·
|
Loss
of import licence in Korea for part of the year impacted all
measures
|
|
·
|
Ready
to drink performance was affected by the excise duty increase in
Australia
in the fourth quarter
|
Key
measures:
|
2008
|
2007
|
Reported
movement
|
Organic
movement
|
||||||||||
|
£ million
|
£ million
|
%
|
%
|
||||||||||
|
Volume
|
2
|
2
|
|||||||||||
|
Net
sales
|
877
|
840
|
4
|
2
|
|||||||||
|
Marketing
spend
|
191
|
199
|
(4
|
)
|
(6
|
)
|
|||||||
|
Operating
profit
|
170
|
196
|
(13
|
)
|
(12
|
)
|
|||||||
Reported
performance:
Net
sales
were £877 million in the year ended 30 June 2008, up £37 million from £840
million in the prior year. Reported operating profit decreased by £26 million
from £196 million to £170 million in the year ended 30 June 2008.
Organic
performance:
Exchange
rate impacts increased net sales by £19 million and there was an organic
increase in net sales of £18 million. Exchange rate impacts increased operating
profit by £2 million and transfers between regions decreased operating profit by
£4 million. There was an organic decrease in operating profit of £24
million.
Brand
performance:
|
Volume
movement
|
Reported
net sales
movement
|
Organic
net sales
movement
|
||||||||
|
%
|
%
|
%
|
||||||||
|
Global
priority brands
|
4
|
9
|
6
|
|||||||
|
Local
priority brands
|
4
|
(7
|
)
|
(7
|
)
|
|||||
|
Category
brands
|
(4
|
)
|
11
|
6
|
||||||
|
Total
|
2
|
4
|
2
|
|||||||
|
Key
spirits brands*:
|
||||||||||
|
Smirnoff
|
20
|
37
|
29
|
|||||||
|
Johnnie
Walker
|
(1
|
)
|
5
|
4
|
||||||
|
Windsor
|
7
|
(17
|
)
|
(12
|
)
|
|||||
|
Guinness
|
1
|
6
|
6
|
|||||||
|
Ready
to drink
|
(2
|
)
|
8
|
(1
|
)
|
|||||
*
Spirits
brands excluding ready to drink
Following
the loss of Diageo’s import licence in Korea the route to market was through a
third party distributor for part of the year. There was a reduction in net
sales
per case, marketing spend and operating profit in Korea and this had a
significant impact on the overall performance of Asia Pacific for the year.
Excluding Korea net sales increased 5% and marketing increased 4%. In addition
overheads increased to support the future performance in the region with the
establishment of in market companies in China and Vietnam, increased resources
behind the Indian domestic route to market and the creation of the distribution
hub in Singapore.
Smirnoff
grew volume 20% and net sales 29%. This performance was driven by double-digit
volume and net sales growth in India, Australia and Thailand. The focus on
Smirnoff flavours in India and Smirnoff Black and flavours in Australia drove
the overall price/mix improvement. A significant increase in marketing spend
fuelled performance in Thailand. The brand grew share in all these
markets.
Johnnie
Walker volume was marginally down with volume decline in India as a result
of
the closure of the duty free channel which was only partially offset by the
growth of sales in the domestic channel, in Australia where net sales grew
as a
result of significant price increases and in Taiwan where the scotch category
declined but Johnnie Walker gained share. In China Johnnie Walker grew volume
7%
in the second half. Therefore volume was flat for the year recovering from
the
8% decline in the first half. Full year net sales increased 4%, following a
10%
decline in the first half. Consumer demand continued to strengthen and Johnnie
Walker gained an estimated 3 percentage points of volume share in the growing
deluxe scotch segment in China. In Thailand Johnnie Walker grew net sales 5%
and
Diageo remained the market leader in both premium and deluxe scotch. Across
the
region net sales grew 4% on the back of price increases. Marketing spend was
broadly in line with last year.
Windsor
volume increased 7% whilst net sales were down 12% as a result of having to
pay
distributor margin in Korea for part of the year. Consistent marketing activity
throughout the year extended Windsor’s leading share within deluxe scotch by 1.1
percentage points in volume terms.
Guinness
volume was up 1% and net sales up 6%, with increased distribution and successful
consumer promotions driving strong double-digit net sales growth in Korea and
with the expansion of the brand in China following a new distribution agreement,
supported by significant marketing activity.
Overall
performance of local priority brands was impacted by Korea, with volume up
4%
but net sales down 7%. Excluding Korea volume was up 2% and net sales were
up
3%. This was driven by Bundaberg in Australia, with volume up 5% and net sales
up 6% as a result of strong sales of Bundaberg ready to drink prior to the
significant increase in duty which was implemented at the end of April and
after
this duty increase, an uplift in Bundaberg spirit sales. This was partially
offset by declines in Old Parr and Dimple.
The
volume of category brands in the region was down 4%, however net sales value
grew 6% as a result of continued focus on improving profitability of scotch
brands in Thailand where low value brands were discontinued. The growth of
locally bottled scotch brands in India, together with the growth of bottled
in
India brands in other categories enhanced Diageo’s route to market there and
offset much of the volume decline in category scotch brands. The growth of
The
Singleton malt whisky in Greater China further contributed to price/mix
improvement.
The
Australia ready to drink segment represents over 90% of ready to drink net
sales
in the region. Ready to drink brands in Australia performed strongly for the
first ten months of the year but slowed significantly following a 70% duty
increase in April 2008 and for the full year volume declined 2% and net sales
were down 1% for the region. For the year ending 30 June 2009 it is expected
that the increase in excise duty in Australia will reduce operating profit
by
£25 million.
Corporate
revenue and costs
Net
sales
were £89 million in the year ended 30 June 2008, up £14 million from £75 million
in the prior year. Net reported operating costs were £164 million, up from £149
million in the prior year. £29 million of this increase relates to exchange rate
movements. Excluding this and the impact of transfers and acquisitions (£2
million increase in costs), net operating costs decreased £16 million.
FINANCIAL
REVIEW
Summary
consolidated income statement
|
Year ended
30 June 2008
|
Year ended
30 June 2007
|
||||||
|
£
million
|
£
million
|
||||||
|
Sales
|
10,643
|
9,917
|
|||||
|
Excise
duties
|
(2,553
|
)
|
(2,436
|
)
|
|||
|
Net
sales
|
8,090
|
7,481
|
|||||
|
Operating
costs
|
(5,864
|
)
|
(5,322
|
)
|
|||
|
Operating
profit
|
2,226
|
2,159
|
|||||
|
Sale
of businesses
|
9
|
(1
|
)
|
||||
|
Net
finance charges
|
(319
|
)
|
(212
|
)
|
|||
|
Share
of associates’ profits after tax
|
177
|
149
|
|||||
|
Profit
before taxation
|
2,093
|
2,095
|
|||||
|
Taxation
|
(522
|
)
|
(678
|
)
|
|||
|
Profit
from continuing operations
|
1,571
|
1,417
|
|||||
|
Discontinued
operations
|
26
|
139
|
|||||
|
Profit
for the year
|
1,597
|
1,556
|
|||||
|
Attributable
to:
|
|||||||
|
Equity
shareholders
|
1,521
|
1,489
|
|||||
|
Minority
interests
|
76
|
67
|
|||||
|
1,597
|
1,556
|
||||||
Sales
and net sales
On
a
reported basis, sales increased by £726 million from £9,917 million in the year
ended 30 June 2007 to £10,643 million in the year ended 30 June 2008. On a
reported basis, net sales increased by £609 million from £7,481 million in the
year ended 30 June 2007 to £8,090 million in the year ended 30 June 2008.
Exchange rate movements increased reported sales by £160 million and reported
net sales by £112 million, principally arising from the strengthening of the
euro. Acquisitions and disposals resulted in a net increase in reported sales
and reported net sales of £1 million for the year.
Operating
costs
On
a
reported basis operating costs increased by £542 million in the year ended 30
June 2008 due to an increase in marketing costs of £77 million, from £1,162
million to £1,239 million, an increase in cost of sales of £242 million, from
£3,003 million to £3,245 million, and an increase in other operating expenses of
£223 million, from £1,157 million to £1,380 million. Exceptional costs of £78
million in respect of restructuring costs for the Irish brewing operations
are
included within operating expenses in the year ended 30 June 2008. Offset within
other operating expenses in the year ended 30 June 2007 was an exceptional
gain
of £40 million on the disposal of land at Park Royal in the United Kingdom.
Excluding exceptional items, operating costs increased by £424 million from
£5,362 million in the year ended 30 June 2007 to £5,786 million in the year
ended 30 June 2008.
Post
employment plans
Post
employment costs for the year ended 30 June 2008 of £53 million (2007 - £56
million) included amounts charged to operating profit of £99 million (2007 -
£104 million) partly offset by finance income of £46 million (2007 - £48
million). At 30 June 2008, Diageo’s deficit before taxation for all post
employment plans was £408 million (2007 - £419 million).
Operating
profit
Reported
operating profit for the year ended 30 June 2008 increased by £67 million to
£2,226 million from £2,159 million in the prior year. In the year ended 30 June
2008, there were exceptional operating costs of £78 million in respect of the
restructuring of the Irish brewing operations. Exceptional property profits
of
£40 million relating to Park Royal were generated in the year ended 30 June
2007. Excluding exceptional items, operating profit for the year increased
by
£185 million from £2,119 million in the year ended 30 June 2007 to £2,304
million in the current year.
Exchange
rate movements reduced operating profit for the year ended 30 June 2008 by
£5
million compared to the prior year.
Sale
of businesses
In
the
year ended 30 June 2008, a gain of £9 million arose from the sale of businesses
including a £5 million gain on the sale of the 49% equity holding in Toptable
and a £4 million gain on the sale of distribution rights for ready to drink
products and Guinness in South Africa to a 42.25% equity accounted associate.
In
the year ended 30 June 2007, a loss before taxation of £1 million arose from the
disposal of businesses.
Net
finance charges
Net
finance charges increased by £107 million from £212 million in the year ended 30
June 2007 to £319 million in the year ended 30 June 2008.
The
net
interest charge increased by £90 million from £251 million in the prior year to
£341 million in the year ended 30 June 2008. This movement principally resulted
from the increase in net borrowings in the year and an increase in US dollar
and
euro interest rates. Exchange rate movements increased the net interest charge
by £1 million.
Other
net
finance income of £22 million (2007 - £39 million) included income of £46
million (2007 - £48 million) in respect of the group’s post employment plans.
Other net finance charges for the year ended 30 June 2008 of £24 million (2007 -
£9 million) includes net charges of £17 million (2007 - £16 million) in respect
of the unwinding of the discount on discounted provisions, £6 million (2007 -
nil) on the conversion of cash transferred out of countries where exchange
controls are in place and £1 million (2007 - income of £7 million) in respect of
exchange rate translation differences on inter-company funding arrangements
that
do not meet the accounting criteria for recognition in equity.
Associates
The
group’s share of associates’ profits after interest and tax was £177 million for
the year ended 30 June 2008 compared to £149 million in the prior year. Diageo’s
34% equity interest in Moët Hennessy contributed £161 million (2007 - £136
million) to share of associates’ profits after interest and tax.
Profit
before taxation
Profit
before taxation decreased by £2 million from £2,095 million to £2,093 million in
the year ended 30 June 2008.
Taxation
The
reported effective tax rate for the year ended 30 June 2008 is 24.9% compared
with 32.4% for the year ended 30 June 2007. Factors that increased the reported
effective tax rate for the year ended 30 June 2007 were a provision for the
settlement of tax liabilities relating to the Guinness/GrandMet merger, lower
carrying value of deferred tax assets primarily following a reduction in tax
rates and the tax impact of an intragroup reorganisation of certain brand
businesses. The underlying effective tax rate for continuing operations for
the
year ended 30 June 2008 is 24.5%, compared with 25.1% for the year ended 30
June
2007. The underlying effective tax rate is expected to be 25% for the year
ending 30 June 2009.
Discontinued
operations
In
the
year ended 30 June 2008, profit after tax in respect of discontinued operations
was £26 million. This principally arose from a tax credit of £24 million
relating to the disposal of the Pillsbury business. In the year ended 30 June
2007 profit after tax in respect of discontinued operations was £139 million.
This profit represented a tax credit of £82
million in respect of the recognition of capital losses that arose on the
disposal of Pillsbury and Burger King and a tax credit of £57 million following
resolution with the tax authorities of various audit issues including prior
year
disposals.
Exchange
rates
The
estimated effect of exchange rate movements on the results for the year ended
30
June 2008 as compared with the results for the year ended 30 June 2007 was
as
follows:
|
Gains/(losses)
£
million
|
||||
|
Operating
profit
|
||||
|
Translation
impact
|
7
|
|||
|
Transaction
impact
|
(12
|
)
|
||
|
Associates
|
||||
|
Translation
impact
|
13
|
|||
|
Transaction
impact
|
-
|
|||
|
Interest
and other finance charges
|
||||
|
Translation
impact
|
(1
|
)
|
||
|
Net
exchange movements on short term inter-company loans
|
(1
|
)
|
||
|
Net
exchange movements on net debt not meeting hedge accounting
criteria
|
(7
|
)
|
||
|
Total
exchange effect on profit before taxation
|
(1
|
)
|
||
|
Year ended
30 June 2008
|
Year ended
30 June 2007
|
||||||
|
Exchange
rates
|
|||||||
|
Translation
US$/£ rate
|
2.01
|
1.93
|
|||||
|
Translation
€/£ rate
|
1.36
|
1.48
|
|||||
|
Transaction
US$/£ rate
|
1.90
|
1.87
|
|||||
|
Transaction
€/£ rate
|
1.39
|
1.45
|
|||||
Dividend
The
directors recommend a final dividend of 21.15 pence per share, an increase
of 5%
on last year’s final dividend. The full dividend will therefore be 34.35 pence
per share, an increase of 5% from the year ended 30 June 2007. Subject to
approval by shareholders, the final dividend will be paid on 20 October 2008
to
shareholders on the register on 12 September 2008. Payment to US ADR holders
will be made on 24 October 2008. A dividend reinvestment plan is available
in
respect of the final dividend and the plan notice date is 29 September
2008.
Cash
flow
|
Year ended
30 June 2008
|
Year ended
30 June 2007
|
||||||
|
£ million
|
£ million
|
||||||
|
Cash
generated from operations
|
2,305
|
2,272
|
|||||
|
Interest
paid (net)
|
(320
|
)
|
(237
|
)
|
|||
|
Dividends
paid to equity minority interests
|
(56
|
)
|
(41
|
)
|
|||
|
Taxation
|
(369
|
)
|
(368
|
)
|
|||
|
Net
sale/(purchase) of other investments
|
4
|
(6
|
)
|
||||
|
Payment
into escrow in respect of UK pension fund
|
(50
|
)
|
(50
|
)
|
|||
|
Net
capital expenditure
|
(262
|
)
|
(205
|
)
|
|||
|
Free
cash flow
|
1,252
|
1,365
|
|||||
Free
cash
flow decreased by £113 million to £1,252 million in the year ended 30 June 2008.
Cash generated from operations increased from £2,272 million to £2,305 million
in the year ended 30 June 2008. This £33 million increase is primarily a result
of higher operating profit of £67 million. This increase was offset by increased
net capital expenditure of £57 million, an increase in net interest payments of
£83 million, due to increased net borrowings during the year and higher interest
rates and an increase in dividend payments to minority interests of £15
million.
In
the
year ended 30 June 2008, Diageo invested £575 million in business acquisitions
(2007 - £70 million) and purchased 97 million shares as part of the share
buyback programme (2007 - 141 million shares) at a cost including fees of £1,008
million (2007 - £1,405 million). Net payments to acquire shares for employee
share schemes totalled £78 million (2007 - £25 million). Net equity dividends of
£857 million were paid during the year (2007 - £858 million).
Diageo
continues to target a range of ratios which are currently broadly consistent
with an A band credit rating. Under this capital structure Diageo would expect
to have the financial capacity to fund a share buyback programme of
approximately £750 million in the year ending 30 June 2009.
Balance
sheet
At
30
June 2008, total equity was £4,175 million compared with £4,170 million at 30
June 2007. The main movements in equity were shares repurchased for cancellation
or holding as treasury shares of £1,008 million and the net equity dividends of
£857 million paid offset by the profit for the period of £1,597 million and the
acquisition of minority interests of £456 million.
Net
borrowings were £6,447 million at 30 June 2008, an increase of £1,602 million
from net borrowings at 30 June 2007 of £4,845 million. The principal components
of this increase were payments of £1,008 million to repurchase shares, the £857
million net equity dividend paid, payments of £575 million to acquire businesses
and adverse exchange movements of £372 million offset by free cash inflow of
£1,252 million.
Economic
profit
Economic
profit increased by £104 million from £635 million in the year ended 30 June
2007 to £739 million in the year ended 30 June 2008. See page 35 for the
definition and calculation of economic profit.
DIAGEO
CONDENSED CONSOLIDATED INCOME STATEMENT
|
Year ended
30 June 2008
|
Year ended
30 June 2007
|
|||||||||
|
Notes
|
£ million
|
£ million
|
||||||||
|
Sales
|
2
|
10,643
|
9,917
|
|||||||
|
Excise
duties
|
(2,553
|
)
|
(2,436
|
)
|
||||||
|
Net
sales
|
8,090
|
7,481
|
||||||||
|
Cost
of sales
|
(3,245
|
)
|
(3,003
|
)
|
||||||
|
Gross
profit
|
4,845
|
4,478
|
||||||||
|
Marketing
expenses
|
(1,239
|
)
|
(1,162
|
)
|
||||||
|
Other
operating expenses
|
(1,380
|
)
|
(1,157
|
)
|
||||||
|
Operating
profit
|
2
|
2,226
|
2,159
|
|||||||
|
Sale
of businesses
|
3
|
9
|
(1
|
)
|
||||||
|
Net
interest payable
|
4
|
(341
|
)
|
(251
|
)
|
|||||
|
Net
other finance income
|
4
|
22
|
39
|
|||||||
|
Share
of associates' profits after tax
|
177
|
149
|
||||||||
|
Profit
before taxation
|
2,093
|
2,095
|
||||||||
|
Taxation
|
5
|
(522
|
)
|
(678
|
)
|
|||||
|
Profit
from continuing operations
|
1,571
|
1,417
|
||||||||
|
Discontinued
operations
|
6
|
26
|
139
|
|||||||
|
Profit
for the year
|
1,597
|
1,556
|
||||||||
|
Attributable
to:
|
||||||||||
|
Equity
shareholders of the parent company
|
1,521
|
1,489
|
||||||||
|
Minority
interests
|
76
|
67
|
||||||||
|
1,597
|
1,556
|
|||||||||
|
Pence
per share
|
||||||||||
|
Basic
earnings
|
59.3p
|
55.4p
|
||||||||
|
Diluted
earnings
|
58.9p
|
55.0p
|
||||||||
|
Average
shares
|
2,566m
|
2,688m
|
||||||||
DIAGEO
CONDENSED CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND
EXPENSE
|
Year ended
30 June 2008
|
Year ended
30 June 2007
|
||||||
|
£ million
|
£ million
|
||||||
|
Exchange
differences on translation of foreign operations excluding
borrowings
|
336
|
(269
|
)
|
||||
|
Exchange
differences on borrowings and derivative net investment
hedges
|
(366
|
)
|
199
|
||||
|
Effective
portion of changes in fair value of cash flow hedges
|
|||||||
|
-
Gains taken to equity
|
26
|
28
|
|||||
|
-
Transferred to income statement
|
(69
|
)
|
35
|
||||
|
Actuarial
(losses)/gains on post employment plans
|
(15
|
)
|
328
|
||||
|
Tax
on items taken directly to equity
|
15
|
(99
|
)
|
||||
|
Net
(expense)/income recognised directly in equity
|
(73
|
)
|
222
|
||||
|
Profit
for the year
|
1,597
|
1,556
|
|||||
|
Total
recognised income and expense for the year
|
1,524
|
1,778
|
|||||
|
Attributable
to:
|
|||||||
|
Equity
shareholders of the parent company
|
1,445
|
1,719
|
|||||
|
Minority
interests
|
79
|
59
|
|||||
|
Total
recognised income and expense for the year
|
1,524
|
1,778
|
|||||
DIAGEO
CONDENSED CONSOLIDATED BALANCE SHEET
|
30 June 2008
|
30 June 2007
|
|||||||||||||||
|
Notes
|
£ million
|
£ million
|
£ million
|
£ million
|
||||||||||||
|
Non-current
assets
|
||||||||||||||||
|
Intangible
assets
|
5,530
|
4,383
|
||||||||||||||
|
Property,
plant and equipment
|
2,122
|
1,932
|
||||||||||||||
|
Biological
assets
|
31
|
12
|
||||||||||||||
|
Investments
in associates
|
1,809
|
1,436
|
||||||||||||||
|
Other
investments
|
168
|
128
|
||||||||||||||
|
Other
receivables
|
11
|
17
|
||||||||||||||
|
Other
financial assets
|
111
|
52
|
||||||||||||||
|
Deferred
tax assets
|
590
|
771
|
||||||||||||||
|
Post
employment benefit assets
|
47
|
38
|
||||||||||||||
|
10,419
|
8,769
|
|||||||||||||||
|
Current
assets
|
||||||||||||||||
|
Inventories
|
7
|
2,739
|
2,465
|
|||||||||||||
|
Trade
and other receivables
|
2,051
|
1,759
|
||||||||||||||
|
Other
financial assets
|
104
|
78
|
||||||||||||||
|
Cash
and cash equivalents
|
8
|
714
|
885
|
|||||||||||||
|
5,608
|
5,187
|
|||||||||||||||
|
Total
assets
|
16,027
|
13,956
|
||||||||||||||
|
Current
liabilities
|
||||||||||||||||
|
Borrowings
and bank overdrafts
|
8
|
(1,663
|
)
|
(1,535
|
)
|
|||||||||||
|
Other
financial liabilities
|
(126
|
)
|
(43
|
)
|
||||||||||||
|
Trade
and other payables
|
(2,143
|
)
|
(1,888
|
)
|
||||||||||||
|
Corporate
tax payable
|
(685
|
)
|
(673
|
)
|
||||||||||||
|
Provisions
|
(72
|
)
|
(60
|
)
|
||||||||||||
|
(4,689
|
)
|
(4,199
|
)
|
|||||||||||||
|
Non-current
liabilities
|
||||||||||||||||
|
Borrowings
|
8
|
(5,545
|
)
|
(4,132
|
)
|
|||||||||||
|
Other
financial liabilities
|
(124
|
)
|
(104
|
)
|
||||||||||||
|
Other
payables
|
(34
|
)
|
(38
|
)
|
||||||||||||
|
Provisions
|
(329
|
)
|
(274
|
)
|
||||||||||||
|
Deferred
tax liabilities
|
(676
|
)
|
(582
|
)
|
||||||||||||
|
Post
employment benefit liabilities
|
(455
|
)
|
(457
|
)
|
||||||||||||
|
(7,163
|
)
|
(5,587
|
)
|
|||||||||||||
|
Total
liabilities
|
(11,852
|
)
|
(9,786
|
)
|
||||||||||||
|
Net
assets
|
4,175
|
4,170
|
||||||||||||||
|
Equity
|
||||||||||||||||
|
Called
up share capital
|
816
|
848
|
||||||||||||||
|
Share
premium
|
1,342
|
1,341
|
||||||||||||||
|
Other
reserves
|
3,163
|
3,186
|
||||||||||||||
|
Retained
deficit
|
(1,823
|
)
|
(1,403
|
)
|
||||||||||||
|
Equity
attributable to equity shareholders of the parent
company
|
3,498
|
3,972
|
||||||||||||||
|
Minority
interests
|
677
|
198
|
||||||||||||||
|
Total
equity
|
10
|
4,175
|
4,170
|
|||||||||||||
DIAGEO
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
|
Year ended
30 June 2008
|
Year ended
30 June 2007
|
||||||||||||
|
£ million
|
£ million
|
£ million
|
£ million
|
||||||||||
|
Cash
flows from operating activities
|
|||||||||||||
|
Profit
for the year
|
1,597
|
1,556
|
|||||||||||
|
Discontinued
operations
|
(26
|
)
|
(139
|
)
|
|||||||||
|
Taxation
|
522
|
678
|
|||||||||||
|
Share
of associates’ profits after taxation
|
(177
|
)
|
(149
|
)
|
|||||||||
|
Net
interest and other net finance income
|
319
|
212
|
|||||||||||
|
(Gains)/losses
on disposal of businesses
|
(9
|
)
|
1
|
||||||||||
|
Depreciation
and amortisation
|
233
|
||||||||||||