Financial Performance - Diageo reported net sales of 20,269millionforfiscal2024,adecreaseof120,555 million in 2023[4]. - Operating profit for fiscal 2024 was 6,001million,reflectingan85,547 million in 2023[4]. - Free cash flow for fiscal 2024 was 2,609million,upfrom2,235 million in 2023, marking a 17% increase[3]. - Earnings per share (EPS) decreased to 173.2 cents in fiscal 2024 from 196.3 cents in 2023, representing a 12% decline[3]. - Total Shareholder Return (TSR) for fiscal 24 was -24%, while the ten-year TSR remained at 6%[27]. - The company increased its dividend by 5%, reflecting confidence in long-term potential[27]. - Profit for the year was 4,166millionin2024,downfrom4,479 million in 2023[175]. - The company reported a basic earnings per share of 173.2 cents[104]. - Return on average invested capital (ROIC) decreased to 15.8%, down 255 basis points mainly due to lower operating profit and increased capital expenditure[98]. Market Strategy and Growth - Diageo aims to increase its Total Beverage Alcohol (TBA) market share from 4% to 6% by 2030, with a current value share of 4.5%[17]. - The spirits category has grown at a compound annual growth rate (CAGR) of 5.1% over the past decade, indicating strong market dynamics[17]. - Diageo's portfolio includes 13 billion-dollar brands, with a strong presence in scotch, vodka, tequila, and gin[13]. - The company plans to become the global leader in whisk(e)y and tequila, leveraging local portfolios and driving growth in Guinness[66]. - Diageo aims to recruit approximately 550 million new legal purchase age consumers into the TBA market by 2033[76]. - The company is committed to adapting to emerging consumer tastes and social occasions to unlock growth opportunities[51]. - Diageo's marketing investment in the region was 235million,reflectinga13700 million in productivity savings, exceeding its three-year productivity goal by 200million[44].−Freecashflowgeneratedwas2.6 billion, supported by strong working capital management[29]. - The company has committed to a productivity target of 2billionoverthenextthreeyears(fiscal25−27)throughenhancedcostmanagementandsupplychainagility[83].−ThecompanyimplementedanewAdvancedPlanningTool(OMP)acrossitstequilaassetbasetoenhancesupplychainefficiencyandrespondtodemandfluctuations[91].RegionalPerformance−InNorthAmerica,DonJuliotequilagrew15timesfasterthanthetotalUSspiritsindustry,andGuinnesswasthefastest−growingimportedbeerintheon−trade[47].−Diageo′sorganicnetsalesdeclinedby0.62,039 million, reflecting a 13% decline, primarily due to unfavorable foreign exchange impacts, while organic net sales grew by 12%[154]. Innovation and Product Development - The company launched its first alcohol-free dark spirit, Captain Morgan Spiced Gold 0.0%, in fiscal 2024[9]. - The global growth of Guinness 0.0 supports increased consumer demand for moderation options, with three of the five largest 0.0 brands globally being Diageo's[78]. - The partnership between Mortlach and Philippe Starck was announced, generating attention for product launches in fiscal 25[78]. - Smirnoff SMASH Tea and Captain Morgan Sliced executed fast launches in North America, winning share in the convenience category[78]. Employee Engagement and Diversity - Employee engagement levels remain high at 81%, with 89% of employees expressing pride in working for Diageo[31]. - The percentage of female leaders globally within Diageo remained stable at 44%[6]. - The company has 40% of its Board and 46% of its leadership from ethnically diverse backgrounds, achieving its 45% leadership representation goal ahead of 2030[92].
Diageo(DEO)2024-08-01 10:40