UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
04 February 2025
Commission File Number: 001-10691
DIAGEO plc
(Translation
of registrant’s name into English)
16 Great Marlborough Street, London, United Kingdom, W1F 7HS
(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
Improved organic sales in the first half of the fiscal year,
despite a challenging environment
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Reported net sales of $10.9 billion declined 0.6% due to
unfavourable foreign exchange, partially offset by an increase in
organic net sales.
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Organic net sales returned to growth and increased $101 million or
1.0%, driven by positive price/mix of 1.2pps, partially offset by a
0.2% volume decline.
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Reported operating profit declined 4.9% and reported operating
profit margin declined 132 bps, primarily due to unfavourable
foreign exchange and a decline in organic operating
margin.
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Organic operating profit declined by $42 million or 1.2%; organic
operating margin declined 69 bps primarily due to continued
investment primarily in overheads, partially offset by reduced
marketing spend and positive gross margin expansion.
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Diageo grew or held total market share in 65%(1) of total net sales
value in measured markets, including in the US.
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EPS pre-exceptionals declined 9.6% to 97.7 cents largely due to a
significantly lower Moët Hennessy contribution and
unfavourable foreign exchange.
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Net cash flow from operating activities increased by $0.2 billion
to $2.3 billion. Free cash flow increased by $0.1 billion to $1.7
billion.
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Medium-term guidance has been removed due to the current
macroeconomic and geopolitical uncertainty in many of our key
markets impacting the pace of recovery. We remain confident of
favourable industry fundamentals and our ability to outperform.
Instead in the interim, we will provide more regular near term
guidance.
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Declared interim dividend of 40.5 cents.
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Leverage ratio of 3.1x (net debt to EBITDA) as at 31 December
2024.
Debra Crew, Chief Executive, said:
Our fiscal 25 first half results marked a return to growth,
delivering organic net sales growth of 1% despite a challenging
industry backdrop as consumers continue to navigate through
inflationary pressures. Growth in four of our five regions was
supported by market share gains. Notably, in North America, we
outperformed the market with high quality share growth and positive
organic net sales growth, driven by strong execution and momentum
in Don Julio and Crown Royal. I'm also particularly proud of the
performance of our iconic Guinness brand, which delivered
double-digit growth for an eighth consecutive half, supported by
brand building expertise, innovation and growing global
momentum.
While the pace of recovery has been slower in several key markets,
we remain confident of favourable long-term industry fundamentals
and more importantly in our ability to outperform the market.
Spirits remains an attractive sector with a long runway for growth,
as we expect to continue to gain share within Total Beverage
Alcohol (TBA). Additionally, our investments in digital
capabilities, supply chain, and our transformational
route-to-market changes will all be supportive in driving long term
sustainable growth, and I am pleased that we are already seeing
early benefits from changes in our US route-to-market
transformation. Diageo has anticipated and planned for a number of
potential scenarios regarding tariffs in recent months. The
confirmation at the weekend of the implementation of tariffs in the
US, whilst anticipated, could very well impact this building
momentum. It also adds further complexity in our ability to provide
updated forward guidance given this is a new and dynamic situation.
We are taking a number of actions to mitigate the impact and
disruption to our business that tariffs may cause, and we will also
continue to engage with the US administration on the broader impact
that this will have on everyone supporting the US hospitality
industry, including consumers, employees, distributors,
restaurants, bars and other retail outlets.
Finally, on behalf of the Board, and personally, I would like to
thank Javier Ferrán for the enormous contribution he has made
as Chair at Diageo. His dedication and stewardship have left the
company in a strong position for high-quality future growth. I
would also like to welcome Sir John Manzoni as his successor. I am
certain that the experience he brings as new Chair will be
invaluable.
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Volume (equivalent units)
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Operating profit
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Earnings per share (eps)
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EU122.8m
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$3,155m
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87.1c
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(F24 H1: EU124.6m)
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(F24 H1: $3,317m)
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(F24 H1: 98.6c)
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Reported movement
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(1)%
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↓
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Reported movement
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(5)%
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↓
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Reported movement
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(12)%
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↓
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Organic movement(2)
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-%
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↓
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Organic movement(2)
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(1)%
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↓
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Eps before exceptional items(2)
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(10)%
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↓
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Net sales
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Net cash from operating activities
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Interim dividend per share
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|||||||
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$10,901m
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$2,325m
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40.50c
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(F24 H1: $10,962m)
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(F24 H1: $2,146m)
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(F24 H1: 40.50c)
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Reported movement
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(1)%
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↓
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F25 H1 free cash flow(2) $1,696m
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Flat
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-%
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Organic movement(2)
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1%
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↑
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F24 H1 free cash flow(2) $1,571m
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(1) Internal estimates incorporating
Nielsen, Association of Canadian Distillers, Dichter & Neira,
Frontline, INTAGE, IRI, ISCAM, NABCA, State Monopolies, TRAC, IPSOS
and other third-party providers. All analysis of data has been
applied with a tolerance of +/- 3 bps and the descriptions applied
of gaining, holding or losing share by the Company or brands are
based on estimated performance within that tolerance. Percentages
represent percent of markets by total Diageo net sales contribution
that have held or gained total trade share fiscal year to date.
Measured markets indicate a market where we have purchased any
market share data. Market share data may include beer, wine,
spirits or other elements. Measured market net sales value sums
to 89% of total Diageo net sales value for the
six months ended 31 December 2024.
(2) See pages
45-51 for an explanation and
reconciliation of non-GAAP measures.
See pages 45-51 for an explanation and reconciliation of non-GAAP
measures, including organic net sales, organic marketing
investment, organic operating profit, free cash flow, eps before
exceptional items, adjusted net debt, adjusted EBITDA and tax rate
before exceptional items. Unless otherwise stated, movements in
results are for the six months ended 31 December 2024 compared to
the six months ended 31 December 2023.
Dividend
An interim dividend of 40.50 cents per share
(2023 - 40.50 cents per share) will be paid to
holders of ordinary shares and US ADRs on register as of 28
February 2025. The ex-dividend date is 27 February 2025 for holders
of ordinary shares and 28 February 2025 for holders of US ADRs. The
interim dividend will be paid to holders of ordinary shares and US
ADRs on 24 April 2025. Holders of ordinary shares will receive
their dividends in sterling unless they elect to receive their
dividends in US dollars by 21 March 2025. The dividend per share in
pence to be paid to ordinary shareholders will be announced on 9
April 2025 and will be determined by the actual foreign exchange
rates achieved by Diageo buying forward contracts for sterling
currency, entered into during the three days preceding the sterling
equivalent announcement of the interim dividend. A dividend
reinvestment plan is available to holders of ordinary shares in
respect of the interim dividend and the plan notice date is 21
March 2025.
To view the interim results document in full, please paste the
following URL into the address bar of your browser:
http://www.rns-pdf.londonstockexchange.com/rns/7500V_1-2025-2-3.pdf
Pre-recorded audio webcast and presentation slides
At 07:05 (UK time) on Tuesday 4 February 2025, Debra Crew, Chief
Executive and Nik Jhangiani, Chief Financial Officer, will present
Diageo's interim results as a pre-recorded audio webcast. This will
be available to view at
www.diageo.com/en/investors/results-reports-and-events/2025-interim-results.
The presentation slides and script will also be available to
download at this time.
Live Q&A conference call
Debra Crew and Nik Jhangiani will be hosting a Q&A conference
call on Tuesday 4 February 2025 at 09:30-10:15 (UK time). For
analysts and shareholders wishing to ask questions, please use the
dial-in details below which will have a Q&A
facility.
Please dial in 15 minutes ahead of the scheduled start time to
register before the call begins.
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From the UK:
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+44 (0)20 3936 2999
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From the UK (free call):
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0800 358 1035
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From the USA:
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+1 646 233 4753
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From the USA (free call):
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+1 855 979 6654
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Passcode:
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389803
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Transcript and audio recording
Following the Q&A conference call, a transcript and audio
recording will be available from the link below:
www.diageo.com/en/investors/results-reports-and-events/2025-interim-results
Key dates
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Trading Update
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19 May 2025
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Guinness Investor and Analyst Event
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19-20 May 2025
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Preliminary Results for year ending 30 June 2025
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5 August 2025
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Enquiries
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Investors:
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Sonya Ghobrial
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+44 (0)7392 784784
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Andy Ryan
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+44 (0)7803 854842
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Brian Shipman
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+1 917 710 3007
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Media:
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Brendan O'Grady
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+44 (0)7812 183750
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Rebecca Perry
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+44 (0)7590 809101
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Clare Cavana
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+44 (0)7751 742072
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Isabel Batchelor
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+44 (0)7731 988857
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Diageo plc LEI:
213800ZVIELEA55JMJ32
SIGNATURE
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 authorized.
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Diageo plc
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(Registrant)
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Date:
04 February 2025
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By:___/s/
James Edmunds
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James Edmunds
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Deputy Company Secretary
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EXHIBIT INDEX
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EXHIBIT
NUMBER
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EXHIBIT
DESCRIPTION
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99.1
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