Performance overview
‘This has been a very challenging year. We took action quickly to manage these difficult times, maximising the benefit of our brand range, reducing our cost base and refocusing marketing spend as consumer trends changed. Overall our results this year demonstrate the resilience of our business.’
Our performance
Operating profit
before exceptionals (£m)
13%
Reported
movement
4%
Organic
movement
Volume (in millions
of equivalent units)
(3%)
Reported
movement
(4%)
Organic
movement
Basic earnings
per share (p)
10%
Reported
movement
Operating profit
(£m)
10%
Reported
movement
4%
Organic
movement
Net sales
(£m)
15%
Reported
movement
0%
Organic
movement
Recommended
full year dividend
per share (p)
5%
Increase
Profit attributable
to parent company’s
equity shareholders
(£m)
7%
Reported
movement
Information presented
Unless otherwise stated in this document, percentage movements are organic movements. Commentary, unless otherwise stated, refers to organic movements. Share, unless otherwise stated, refers to value share. See the ‘Business review’ for an explanation of organic movement calculations. The market data contained in this document is taken from independent industry sources in the markets in which Diageo operates.
Key figures
£1,204m
Strong free
cash flow
36.10p
Recommended
full year dividend
per share
+5%
£1.2bn
Returned to
shareholders
£870m
in dividends
£352m
in share buybacks
(9%)
Marketing spend
organic decrease
A refocusing of spend as consumer trends changed, together with a greater reduction in spend on ready to drink and benefits from savings in media rate deflation, saw a reduction in marketing spend in the year.
Brand performance overview
| Organic volume movement % | Organic net sales movement % | Reported volume movement % | Reported net sales movement % |
|
|---|---|---|---|---|
| Global priority brands | (5) | (2) | (5) | 11 |
| Local priority brands* | (1) | 1 | 5 | 24 |
| Category brands* | (2) | 4 | (1) | 17 |
| Total | (4) | – | (3) | 15 |
| Spirits** | (4) | – | (3) | 16 |
| Beer | – | 5 | – | 16 |
| Wine | 1 | (5) | 2 | 12 |
| Ready to drink | (11) | (8) | (11) | 5 |
| Key spirits brands:** | ||||
| Smirnoff | (2) | 2 | (2) | 17 |
| Johnnie Walker | (11) | (6) | (11) | 4 |
| Captain Morgan | 3 | 7 | 3 | 29 |
| Baileys | (10) | (9) | (10) | 3 |
| J&B | (13) | (12) | (13) | - |
| José Cuervo | 2 | 3 | 2 | 27 |
| Tanqueray | (10) | (8) | (10) | 12 |
| Crown Royal – North America | (1) | (1) | (1) | 23 |
| Buchanan’s – International | (15) | 2 | (15) | 18 |
| Windsor – Asia Pacific | 3 | 22 | 3 | 17 |
| Guinness | (3) | 4 | (3) | 16 |
* Brand additions in the year ended 30 June 2008 Ketel One vodka and Rosenblum Cellars wine are included in local priority brands in North America and in category brands in other regions while Zacapa rum is reported in category brands globally.
** Spirits brands excluding ready to drink.
Smirnoff
In-depth customer and consumer understanding
See how Smirnoff is reacting to the new media age in its new campaign
2%
Net sales increase
Captain Morgan
Outstanding collection of brands
See how innovation is helping drive growth behind the world’s number 2 rum
7%
Net sales increase