Drinks giant Diageo has released its preliminary results for the year that ended on June 30, 2019, which reveal that the firm's net sales increased 5.8% to £12.9 billion during the period.
Diageo's operating profit rose 9.5% to £4 billion while its organic net sales increased 6.1%, its organic volume increased 2.3% and its organic operating profit increased 9%.
The company reported that its cash flow continued to be strong, with its net cash from operating activities rising £164 million to £3.2 billion and its free cash flow rising £85 million to £2.6 billion.
Additionally, basic eps of 130.7 pence increased by 7.4%, pre-exceptional eps grew 10.3% to 130.8 pence and the firm's final dividend increased 5%, bringing the full year dividend to 68.57 pence per share.
"Another Year Of Strong Performance"
Commenting on the results, Diageo chief executive Ivan Menezes said, "Diageo has delivered another year of strong performance. Organic volume and net sales growth was broad based across regions and categories, with new product innovation being a strong contributor. We expanded organic operating margin ahead of our guidance and increased investment behind our brands ahead of organic net sales growth.
"Fiscal 19 has been another year of strong free cash flow delivery at £2.6 billion and we have returned £2.8 billion to shareholders via share buybacks. The board has approved plans for an additional return to shareholders of up to £4.5 billion over Fiscal 20 to Fiscal 22.
"Our focus on quality sustainable growth is backed by a culture of everyday efficiency that enables us to invest smartly in marketing and growth initiatives while expanding margins.
"These results reflect the steady progress we are making, and, as we look ahead, we see attractive opportunities to deliver consistent growth and create shareholder value. In the medium term, I expect Diageo to maintain organic net sales growth in the mid-single digit range and to grow organic operating profit ahead of net sales in the range of 5%-7%."
© 2019 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.
