|
Delivered strong net sales growth across all regions
-
Reported net sales of £15.5 billion, up 21.4%, primarily
driven by strong organic net sales growth, up 21.4%, with strong
double-digit growth across all regions.
- Growth reflects continued recovery
of the on-trade, resilient consumer demand in the off-trade and
market share gains, and was underpinned by favourable industry
trends of spirits taking share of total beverage alcohol and
premiumisation(1).
-
Price/mix growth was 11.1 percentage points, reflecting positive
mix from strong performance in super-premium-plus brands, and
mid-single digit price growth driven by price increases across all
regions.
|
|
|
Expanded operating margin while increasing marketing
investment
-
Reported operating profit of £4.4 billion, up 18.2%, primarily
driven by organic operating profit growth. Reported operating
margin decreased 77bps, with organic margin expansion more than
offset by exceptional operating items of £388
million.
-
Organic operating profit grew 26.3%, with growth across all
regions.
-
Organic operating margin increased 121bps, reflecting a strong
recovery in gross margin and leverage on operating costs, while
increasing marketing investment.
- Price
increases and supply productivity savings more than offset the
absolute impact of cost inflation, and mostly offset the adverse
impact on gross margin.
|
|
|
Delivered broad-based category growth and gained market
share
- Growth
was broad-based across categories, with particularly strong growth
of scotch, tequila and beer.
-
Premium-plus brands contributed 57% of reported net sales and drove
71% of organic net sales growth.
- Off-trade market share
grew or held in over 85%(2) of total net
sales value in measured markets.
|
|
|
Strengthened portfolio through acquisitions and
disposals
-
Acquired 21Seeds, a rapidly growing flavoured tequila brand, and
Mezcal Unión, a premium artisanal mezcal brand.
-
Disposed of Meta Abo Brewery in Ethiopia and Picon brand; signed
agreements for the sale of the Windsor business in Korea and the
disposal and franchising of a portfolio of brands in
India.
|
|
|
Invested to sustain long-term growth
-
Increased organic marketing investment 24.7%, ahead of organic net
sales growth.
-
Invested £1.1 billion of capex in production capacity,
sustainability, digital capabilities and consumer
experiences.
|
|
|
Delivered strong cash generation
- Net
cash flow from operating activities increased £0.3 billion to
£3.9 billion, and free cash flow decreased £0.3 billion
to £2.8 billion, due to lapping an exceptionally strong
working capital benefit in fiscal 21.
-
Strong balance sheet, with leverage ratio(3) of 2.5x at 30
June 2022, at the low end of our target range.
|
|
|
Continued progress in delivering Society 2030 goals
- Our
brand moderation campaigns reached 456 million people and we
educated more than 607,000 people on the dangers of underage
drinking through the award winning SMASHED
programme.
-
Strong momentum in creating a diverse and inclusive organisation,
with 44% female leaders globally, up 2%, and 41% ethnically
diverse leaders, up 4%.
-
Continued water stewardship, delivering 3.7% improvement in water
efficiency globally and generating annual capacity to replenish
more than one million cubic metres of water in water-stressed
areas.
|
|
|
Created long-term shareholder value
-
Increased basic eps by 23.2% to 140.2 pence and pre-exceptional eps
by 29.3% to 151.9 pence.
-
Increased recommended final dividend by 5% to 46.82 pence per
share.
-
Completed £3.6 billion of share buybacks as part of return of
capital programme of up to £4.5 billion.
-
Expect to complete remaining £0.9 billion of the programme
during fiscal 23.
|
|
Financial performance
|
|
||||||||||
Volume (equivalent units)
|
|
Operating profit
|
|
Earnings per share (eps)
|
|
||||||
EU263.0m
|
|
|
|
£4,409m
|
|
|
|
140.2p
|
|
|
|
(F21: EU 238.4 m)
|
|
|
|
(F21: £3,731m)
|
|
|
|
(F21: 113.8p)
|
|
|
|
Reported movement
|
10%
|
h
|
|
Reported movement
|
18%
|
h
|
|
Reported movement
|
23%
|
h
|
|
Organic
movement(2)
|
10%
|
h
|
|
Organic
movement(2)
|
26%
|
h
|
|
Eps
before exceptional items(2)
|
29%
|
h
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
Net cash from operating activities
|
|
Total recommended dividend
per share(3)
|
|
||||||
£15,452m
|
|
|
|
£3,935m
|
|
|
|
76.18p
|
|
|
|
(F21: £12,733m)
|
|
|
|
(F21: £3,654m)
|
|
|
|
(F21: 72.55p)
|
|
|
|
Reported movement
|
21%
|
h
|
|
F22
free cash flow(2) £2,783m
|
|
|
|
Increase
|
5%
|
h
|
|
Organic
movement(2)
|
21%
|
h
|
|
F21
free cash flow(2) £3,037m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
2021
|
Organic growth
%
|
Reported growth
%
|
Volume
|
EUm
|
263.0
|
238.4
|
10
|
10
|
Net sales
|
£ million
|
15,452
|
12,733
|
21
|
21
|
Marketing
|
£ million
|
2,721
|
2,163
|
25
|
26
|
Operating profit before exceptional items
|
£ million
|
4,797
|
3,746
|
26
|
28
|
Exceptional
operating items(1)
|
£ million
|
(388)
|
(15)
|
|
|
Operating profit
|
£ million
|
4,409
|
3,731
|
|
18
|
Share of associate and joint venture profit after tax
|
£ million
|
417
|
334
|
|
25
|
Non-operating
exceptional items(1)
|
£ million
|
(17)
|
14
|
|
|
Net finance charges
|
£ million
|
(422)
|
(373)
|
|
|
Exceptional
taxation credit/(charge)(1)
|
£ million
|
31
|
(84)
|
|
|
Tax rate including exceptional items
|
%
|
23.9
|
24.5
|
|
(2)
|
Tax rate before exceptional items
|
%
|
22.5
|
22.2
|
|
1
|
Profit attributable to parent company's shareholders
|
£ million
|
3,249
|
2,660
|
|
22
|
Basic earnings per share
|
pence
|
140.2
|
113.8
|
|
23
|
Basic earnings per share before exceptional items
|
pence
|
151.9
|
117.5
|
|
29
|
Recommended full year dividend
|
pence
|
76.18
|
72.55
|
|
5
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit before exceptional items
|
Operating profit
|
|||||
|
%
|
EUm
|
%
|
£ million
|
%
|
£ million
|
%
|
£ million
|
%
|
£ million
|
North America
|
3
|
1.6
|
17
|
886
|
28
|
264
|
10
|
217
|
10
|
216
|
Europe
|
20
|
8.5
|
26
|
654
|
22
|
104
|
60
|
382
|
40
|
251
|
Asia Pacific
|
8
|
6.6
|
16
|
396
|
17
|
72
|
17
|
103
|
(23)
|
(138)
|
Africa
|
12
|
3.9
|
19
|
270
|
18
|
31
|
84
|
144
|
84
|
144
|
Latin America and Caribbean
|
17
|
4.0
|
46
|
479
|
51
|
82
|
78
|
235
|
78
|
235
|
Corporate
|
-
|
-
|
170
|
34
|
71
|
5
|
(14)
|
(30)
|
(14)
|
(30)
|
Diageo
|
10
|
24.6
|
21
|
2,719
|
26
|
558
|
28
|
1,051
|
18
|
678
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit before exceptional items
|
||||
|
%
|
EUm
|
%
|
£ million
|
%
|
£ million
|
%
|
£ million
|
North America
|
3
|
1.4
|
14
|
754
|
24
|
222
|
7
|
148
|
Europe
|
20
|
8.5
|
30
|
766
|
26
|
122
|
64
|
418
|
Asia Pacific
|
8
|
6.6
|
16
|
402
|
16
|
68
|
16
|
98
|
Africa
|
13
|
4.0
|
22
|
308
|
22
|
36
|
79
|
152
|
Latin America and Caribbean
|
17
|
4.0
|
43
|
451
|
49
|
79
|
70
|
218
|
Corporate
|
-
|
-
|
175
|
35
|
83
|
5
|
(18)
|
(39)
|
Diageo
|
10
|
24.5
|
21
|
2,716
|
25
|
532
|
26
|
995
|
Fiscal 19 to fiscal 22 growth
|
|||||
|
Reported
net sales growth %(1)
|
Net
sales growth on a constant basis %(1)
|
|
Organic
volume CAGR %(2)
|
Organic
net sales CAGR %(2)
|
North America
|
37
|
41
|
|
5
|
12
|
Europe
|
9
|
18
|
|
5
|
6
|
Asia Pacific
|
7
|
11
|
|
-
|
4
|
Africa
|
5
|
24
|
|
5
|
8
|
Latin America and Caribbean
|
35
|
50
|
|
7
|
16
|
Corporate
|
2
|
2
|
|
-
|
1
|
Diageo
|
20
|
28
|
|
3
|
9
|
Net sales
|
£ million
|
2021
|
12,733
|
Exchange(2)
|
(221)
|
Acquisitions and disposals
|
35
|
Hyperinflation(3)
|
189
|
Volume
|
1,311
|
Price/mix
|
1,405
|
2022
|
15,452
|
Operating profit
|
£ million
|
2021
|
3,731
|
Exceptional
operating items(1)
|
(373)
|
Exchange
|
(32)
|
Acquisitions and disposals
|
(16)
|
FVR(2)
|
94
|
Hyperinflation(3)
|
10
|
Organic movement
|
995
|
2022
|
4,409
|
Operating margin
|
ppt
|
2021
|
29.3
|
Exceptional
operating items(1)
|
(2.39)
|
Exchange
|
0.21
|
Acquisitions and disposals
|
(0.14)
|
Other(2)
|
0.34
|
Gross margin
|
1.12
|
Marketing
|
(0.46)
|
Other operating items
|
0.55
|
2022
|
28.5
|
Basic earnings per share
|
pence
|
2021
|
113.8
|
Exceptional
items after tax(2)
|
(8.0)
|
Exchange on operating profit
|
(1.4)
|
Acquisitions
and disposals(3)
|
(0.8)
|
Organic operating profit
|
42.6
|
Associates and joint ventures
|
3.5
|
Finance
charges(4)
|
(0.7)
|
Tax(5)
|
(11.4)
|
Share buyback
|
0.5
|
Non-controlling interests
|
(2.3)
|
FVR(6)
|
4.0
|
Hyperinflation
(operating profit)(7)
|
0.4
|
2022
|
140.2
|
Free cash flow
|
£ million
|
2021 Net cash from operating activities
|
3,654
|
2021 Capex and movements in loans and other
investments
|
(617)
|
2021 Free cash flow
|
3,037
|
Exchange(2)
|
(32)
|
Operating
profit(3)
|
1,003
|
Working
capital(4)
|
(510)
|
Capex
|
(467)
|
Tax
|
(97)
|
Interest
|
23
|
Other(5)
|
(174)
|
2022 Free cash flow
|
2,783
|
2022 Capex and movements in loans and other
investments
|
1,152
|
2022
Net cash from operating activities
|
3,935
|
Return on average invested capital
|
ppt
|
2021
|
13.5
|
Exchange
|
0.29
|
Acquisitions and disposals
|
(0.27)
|
Organic operating profit
|
4.44
|
Associates and joint ventures
|
0.19
|
Tax
|
(1.32)
|
Other
|
(0.02)
|
2022
|
16.8
|
● Reported net sales grew 17%, primarily
reflecting strong organic growth. There were favourable impacts
from foreign exchange, mainly due to the strengthening of the US
dollar, and from brand acquisitions.
|
● Organic net sales increased 14%, building on
strong growth in fiscal 21, largely driven by US
Spirits.
|
● US Spirits net sales grew 17%, reflecting the
recovery of the on-trade channel and resilient consumer demand in
the off-trade channel, market share gains and spirits taking share
of total beverage alcohol, and replenishment of stock levels by
distributors. We drove particularly strong growth in our
super-premium-plus portfolio and increased prices.
|
● US Spirits shipments were ahead of depletions,
with a benefit of approximately three percentage points from the
replenishment of stock levels by distributors, recovering from
lower levels during Covid-19. It also reflects distributors
increasing inventories of certain imported products due to longer
product transit times in fiscal 22.
|
● US Spirits growth was primarily driven by
tequila, up 57%, as well as double-digit growth in scotch and US
whiskey and growth in Canadian whisky. This more than offset
declines in Baileys and rum.
|
● Diageo Beer Company net sales increased 2%,
reflecting increased sales of Guinness driven by the on-trade
recovery and growth in ready to drink(1),
partially offset by a decline in flavoured malt
beverages.
|
● Organic operating margin decreased by 295bps,
as we continued to increase marketing investment, up 24%, ahead of
net sales growth, to support growth momentum across key brands.
Price increases and productivity savings partially offset cost
inflation.
|
Key financials £ million:
|
|||||||
|
2021
|
Exchange
|
Acquisitions
and
disposals
|
Organic movement
|
Other(3)
|
2022
|
Reported movement%
|
Net sales
|
5,209
|
98
|
34
|
754
|
-
|
6,095
|
17
|
Marketing
|
936
|
19
|
24
|
222
|
(1)
|
1,200
|
28
|
Operating profit before exceptional items
|
2,237
|
49
|
(19)
|
148
|
39
|
2,454
|
10
|
Exceptional
operating items(2)
|
-
|
|
|
|
|
(1)
|
|
Operating profit
|
2,237
|
|
|
|
|
2,453
|
10
|
Markets and categories:
|
|
|
|
|
Global giants, local stars and reserve(5):
|
||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
|
Organic
volume
movement(6)
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
North America
|
3
|
3
|
14
|
17
|
|
Crown Royal
|
2
|
6
|
8
|
|
|
|
|
|
|
Don Julio
|
30
|
36
|
38
|
US Spirits
|
4
|
4
|
17
|
19
|
|
Casamigos
|
81
|
88
|
91
|
DBC
USA(1)(4)
|
(2)
|
-
|
2
|
6
|
|
Johnnie Walker
|
9
|
26
|
28
|
Canada
|
(2)
|
(2)
|
3
|
6
|
|
Smirnoff
|
(4)
|
(3)
|
(2)
|
|
|
|
|
|
|
Captain Morgan
|
(3)
|
(5)
|
(3)
|
Spirits
|
3
|
3
|
16
|
18
|
|
Ketel
One(7)
|
7
|
12
|
13
|
Beer
|
(4)
|
(4)
|
1
|
2
|
|
Baileys
|
(10)
|
(8)
|
(6)
|
Ready
to drink(4)
|
15
|
40
|
21
|
49
|
|
Guinness
|
5
|
7
|
9
|
|
|
|
|
|
|
Bulleit
|
10
|
14
|
16
|
|
|
|
|
|
|
Cîroc vodka
|
(4)
|
-
|
1
|
|
|
|
North America contributed
|
|
North America organic net sales grew
|
39% of Diageo reported net sales in
fiscal 22
|
|
14% in fiscal 22
|
● Reported
net sales increased 26%, driven by strong organic growth. Net sales
were unfavourably impacted by foreign exchange, primarily due to
the weakening of the Turkish lira, which was partially offset by a
hyperinflation adjustment(1).
|
● Organic
net sales grew 30%, with strong double-digit growth across all
markets and a partial recovery of Travel Retail
Europe.
|
● Growth
reflects the recovery of the on-trade channel, particularly in
Ireland, Great Britain and Southern Europe, as well as resilient
consumer demand in the off-trade channel, where Diageo continued to
gain market share.
|
● Growth
was also underpinned by the spirits category gaining share of total
beverage alcohol, premiumisation, price increases and
innovation.
|
● Spirits
net sales grew 24%, with broad-based growth across scotch, vodka,
Baileys, gin, rum and raki.
|
● Beer net sales grew 63%, following a 21%
decline in fiscal 21, with strong growth in Guinness driven by the
on-trade recovery in Ireland and Great Britain, as well as growth
from innovation.
|
● Strong
improvement in organic operating margin of 671bps primarily
reflects leverage on operating costs as net sales recovered
strongly. Benefits from positive channel and product mix, price
increases, productivity savings and improved fixed cost absorption
more than offset cost inflation.
|
● Marketing
investment increased 26%, supporting the on-trade recovery and
off-trade share momentum.
|
Key financials £ million:
|
||||||||
|
2021
|
Exchange
|
Acquisitions
and
disposals
|
Organic movement
|
Other(2)
|
Hyperinflation(1)
|
2022
|
Reported movement
%
|
Net sales
|
2,558
|
(304)
|
3
|
766
|
-
|
189
|
3,212
|
26
|
Marketing
|
473
|
(35)
|
-
|
122
|
-
|
17
|
577
|
22
|
Operating profit before exceptional items
|
635
|
(110)
|
1
|
418
|
63
|
10
|
1,017
|
60
|
Exceptional
operating items(3)
|
(15)
|
|
|
|
|
|
(146)
|
|
Operating profit
|
620
|
|
|
|
|
|
871
|
40
|
Markets and categories:
|
|
|
|
|
Global giants and local stars(4):
|
||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
|
Organicvolumemovement(5)
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
Europe
|
20
|
20
|
30
|
26
|
|
Guinness
|
42
|
65
|
62
|
|
|
|
|
|
|
Johnnie Walker
|
22
|
35
|
31
|
Great Britain
|
15
|
15
|
20
|
20
|
|
Baileys
|
20
|
19
|
16
|
Northern Europe
|
16
|
16
|
15
|
10
|
|
Smirnoff
|
35
|
38
|
35
|
Southern Europe
|
30
|
27
|
33
|
26
|
|
Captain Morgan
|
11
|
12
|
9
|
Ireland
|
35
|
35
|
71
|
65
|
|
Tanqueray
|
36
|
37
|
33
|
Eastern Europe
|
7
|
8
|
18
|
18
|
|
Yenì Raki
|
9
|
15
|
14
|
Turkey
|
18
|
18
|
49
|
25
|
|
J&B
|
19
|
26
|
17
|
|
|
|
|
|
|
|
|
|
|
Spirits
|
18
|
18
|
24
|
19
|
|
|
|
|
|
Beer
|
36
|
36
|
63
|
60
|
|
|
|
|
|
Ready to drink
|
23
|
23
|
23
|
22
|
|
|
|
|
|
|
|
|
Europe contributed
|
|
Europe organic net sales grew
|
21% of Diageo reported net sales in
fiscal 22
|
|
30% in fiscal 22
|
● Reported
net sales grew 16%, primarily reflecting strong organic
growth.
|
● Organic
net sales grew 16%, with strong growth in India and Greater China,
and a partial recovery of Travel Retail Asia and Middle
East.
|
● Spirits grew 17%, mainly driven by scotch,
Chinese white spirits and IMFL whisky(1).
|
● Organic
operating margin was flat. Benefits from the partial recovery of
Travel Retail, positive category mix and price increases were
offset by strategic investments in Greater China, cost inflation
and one-off costs.
|
● Marketing investment increased 16%, mainly
driven by Greater China, across Chinese white spirits and
scotch.
|
Key financials £ million:
|
||||||
|
2021
|
Exchange
|
Acquisitions
and
disposals
|
Organic movement
|
2022
|
Reported movement
%
|
Net sales
|
2,488
|
(6)
|
-
|
402
|
2,884
|
16
|
Marketing
|
418
|
4
|
-
|
68
|
490
|
17
|
Operating profit before exceptional items
|
608
|
5
|
-
|
98
|
711
|
17
|
Exceptional
operating items(2)
|
-
|
|
|
|
(241)
|
|
Operating profit
|
608
|
|
|
|
470
|
(23)
|
Markets and categories:
|
|
|
|
|
Global giants, local stars and reserve(3):
|
||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
|
Organicvolumemovement(4)
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
Asia Pacific
|
8
|
8
|
16
|
16
|
|
Johnnie Walker
|
24
|
28
|
28
|
|
|
|
|
|
|
Shui
Jing Fang(5)
|
16
|
19
|
24
|
India
|
7
|
7
|
17
|
16
|
|
McDowell's
|
5
|
6
|
4
|
Greater China
|
6
|
6
|
13
|
17
|
|
Guinness
|
5
|
9
|
7
|
Australia
|
2
|
2
|
-
|
(2)
|
|
The Singleton
|
11
|
16
|
18
|
South East Asia
|
14
|
14
|
20
|
19
|
|
Smirnoff
|
13
|
14
|
14
|
North Asia
|
(5)
|
(5)
|
12
|
6
|
|
Baileys
|
12
|
13
|
12
|
Travel Retail Asia and Middle East
|
135
|
125
|
178
|
184
|
|
Windsor
|
1
|
(9)
|
(13)
|
|
|
|
|
|
|
|
|
|
|
Spirits
|
8
|
8
|
17
|
18
|
|
|
|
|
|
Beer
|
4
|
4
|
9
|
7
|
|
|
|
|
|
Ready to drink
|
3
|
3
|
2
|
(1)
|
|
|
|
|
|
|
|
|
Asia Pacific contributed
|
|
Asia Pacific organic net sales grew
|
19% of Diageo reported net sales in
fiscal 22
|
|
16% in fiscal 22
|
● Reported
net sales grew 19%, primarily driven by strong organic growth.
There were unfavourable impacts from foreign exchange and the
disposal of the Meta Abo Brewery in Ethiopia.
|
● Organic
net sales grew 22%, primarily driven by East Africa and Nigeria.
All markets grew double digits.
|
● Strong
growth in East Africa and Nigeria was driven by the continued
recovery of the on-trade channel, particularly in Kenya, as well as
price increases and focused execution of our total beverage alcohol
strategy.
|
● Beer
net sales grew 22%, primarily driven by Malta Guinness, Guinness
and Senator.
|
● Spirits
net sales grew 21%, driven by double-digit growth in both
mainstream and international spirits, particularly scotch, gin and
vodka.
|
● Organic
operating margin improved 643bps, primarily driven by price
increases and leverage on operating costs. The benefit from price
increases and productivity savings more than offset cost
inflation.
|
● Marketing
investment increased 22%, in line with organic net sales growth.
Investment focused on key categories, as well as on e-commerce and
new route to consumer opportunities.
|
Key financials £ million:
|
||||||
|
2021
|
Exchange
|
Acquisitions
and
disposals
|
Organic movement
|
2022
|
Reported movement
%
|
Net sales
|
1,412
|
(33)
|
(5)
|
308
|
1,682
|
19
|
Marketing
|
168
|
(5)
|
-
|
36
|
199
|
18
|
Operating profit
|
171
|
(10)
|
2
|
152
|
315
|
84
|
Markets and categories:
|
|
|
|
|
Global giants and local stars(2):
|
||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
|
Organicvolumemovement(3)
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
Africa(1)
|
13
|
12
|
22
|
19
|
|
Guinness
|
4
|
17
|
13
|
|
|
|
|
|
|
Johnnie Walker
|
16
|
22
|
22
|
East Africa
|
22
|
22
|
25
|
24
|
|
Smirnoff
|
9
|
21
|
21
|
Africa
Regional Markets(1)
|
9
|
7
|
14
|
9
|
|
|
|
|
|
Nigeria
|
1
|
1
|
30
|
26
|
|
Other beer:
|
|||
South
Africa(1)
|
6
|
4
|
12
|
10
|
|
|
|
|
|
|
|
|
|
|
|
Malta
Guinness(1)
|
30
|
53
|
40
|
Spirits
|
12
|
12
|
21
|
20
|
|
Senator
|
38
|
36
|
33
|
Beer(1)
|
14
|
13
|
22
|
19
|
|
Tusker
|
14
|
27
|
26
|
Ready
to drink(1)
|
11
|
5
|
28
|
20
|
|
Serengeti
|
9
|
9
|
10
|
|
|
|
Africa contributed
|
|
Africa organic net sales grew
|
11% of Diageo reported net sales in
fiscal 22
|
|
22% in fiscal 22
|
● Reported
net sales grew 46%, primarily reflecting strong organic growth. A
favourable currency impact primarily reflects the strengthening of
the Brazilian real and Mexican peso.
|
● Organic
net sales increased 43%, following double-digit growth in fiscal
21, with strong double-digit growth in all markets, particularly
PEBAC, CCA and Colombia.
|
● Growth
reflects further recovery of the on-trade channel and strong
consumer demand in the off-trade channel, where Diageo continued to
gain share in all markets except Mexico.
|
● Strong price/mix was driven by price increases
across all markets, and positive mix from the strong performance of
premium-plus scotch across the region.
|
● Spirits
net sales grew 45%, primarily driven by strong double-digit scotch
growth, as well as strong growth across other categories,
particularly tequila and gin.
|
● Organic
operating margin improved by 564bps, primarily driven by price
increases and premiumisation. This was partially offset by cost
inflation and an increase in marketing
investment.
|
● Marketing
investment increased 49%, ahead of net sales
growth.
|
Key financials £ million:
|
|||||||
|
2021
|
Exchange
|
Acquisitions
and
disposals
|
Organic movement
|
Other(1)
|
2022
|
Reported movement
%
|
Net sales
|
1,046
|
25
|
3
|
451
|
-
|
1,525
|
46
|
Marketing
|
161
|
2
|
1
|
79
|
-
|
243
|
51
|
Operating profit
|
303
|
25
|
-
|
218
|
(8)
|
538
|
78
|
Markets and categories:
|
|
|
|
|
Global giants, local stars and reserve(2):
|
||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
|
Organicvolumemovement(3)
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
Latin America and Caribbean
|
|
|
|
|
|
Johnnie Walker
|
42
|
59
|
63
|
17
|
17
|
43
|
46
|
|
Buchanan's
|
48
|
59
|
60
|
|
|
|
|
|
|
|
Don Julio
|
9
|
34
|
37
|
PUB
|
12
|
12
|
36
|
41
|
|
Old Parr
|
47
|
61
|
62
|
Mexico
|
6
|
7
|
24
|
28
|
|
Smirnoff
|
22
|
17
|
18
|
CCA
|
34
|
34
|
56
|
61
|
|
Black & White
|
(3)
|
9
|
10
|
Andean
|
18
|
18
|
45
|
38
|
|
Baileys
|
20
|
31
|
32
|
PEBAC
|
31
|
31
|
64
|
62
|
|
Tanqueray
|
37
|
41
|
45
|
|
|
|
|
|
|
|
|
|
|
Spirits
|
17
|
17
|
45
|
48
|
|
|
|
|
|
Beer
|
2
|
2
|
6
|
2
|
|
|
|
|
|
Ready to drink
|
36
|
36
|
42
|
45
|
|
|
|
|
|
Latin America and Caribbean contributed
|
|
Latin America and Caribbean organic net sales grew
|
10% of Diageo reported net sales in
fiscal 22
|
|
43% in fiscal 22
|
● Spirits
grew 21%, with broad-based growth across categories, and
particularly strong performance in scotch, tequila, vodka, gin and
Chinese white spirits.
|
● Scotch
grew 29%, led by Johnnie Walker up 34%, with both growing strong
double digits across all regions.
|
● Tequila
grew 55%, with Don Julio and Casamigos continuing to gain share of
the fast-growing tequila category within the US spirits
market.
|
● Vodka
grew 11%, with growth across all regions, particularly Europe.
Smirnoff and Ketel One both grew double digits.
|
● Gin
grew 18%, primarily driven by strong double-digit growth in Europe,
Africa and Latin America and Caribbean. Tanqueray and Gordon's both
grew double digits.
|
● Beer grew 25%, primarily due to the strong
recovery of Guinness, up 32%, driven by Ireland and Great Britain
as on-trade restrictions eased, as well as double-digit growth in
Africa.
|
● Ready
to drink grew 18%, with double-digit growth across Europe, Africa,
Latin America and Caribbean and North America.
|
|
Organicvolumemovement(1)%
|
Organic
net sales
movement
%
|
Reported
net sales
movement
%
|
Spirits(2)
|
10
|
21
|
21
|
Scotch
|
18
|
29
|
29
|
Tequila
|
47
|
55
|
57
|
Vodka(3)(4)
|
12
|
11
|
11
|
Canadian whisky
|
(1)
|
6
|
7
|
Rum(3)
|
5
|
6
|
6
|
Liqueurs
|
11
|
10
|
8
|
Gin(3)
|
16
|
18
|
18
|
Indian-Made Foreign Liquor (IMFL) whisky
|
5
|
7
|
5
|
US whiskey
|
5
|
14
|
16
|
Beer
|
14
|
25
|
22
|
Ready to drink
|
14
|
18
|
21
|
|
Organicvolumemovement(2)%
|
Organic
net sales
movement
%
|
Reported
net sales
movement
%
|
Global giants
|
|
|
|
Johnnie Walker
|
25
|
34
|
35
|
Guinness
|
16
|
32
|
30
|
Smirnoff
|
11
|
11
|
11
|
Baileys
|
10
|
9
|
8
|
Captain Morgan
|
3
|
2
|
2
|
Tanqueray
|
18
|
20
|
20
|
Local stars
|
|
|
|
Crown Royal
|
1
|
6
|
8
|
Shui
Jing Fang(3)
|
16
|
19
|
24
|
McDowell's
|
5
|
5
|
4
|
Buchanan's
|
36
|
39
|
40
|
J&B
|
17
|
22
|
16
|
Old Parr
|
47
|
59
|
59
|
Black & White
|
7
|
20
|
20
|
Yenì Raki
|
9
|
15
|
14
|
Windsor
|
1
|
(9)
|
(13)
|
Bundaberg
|
1
|
(4)
|
(6)
|
Ypióca
|
(9)
|
8
|
12
|
Reserve
|
|
|
|
Don Julio
|
24
|
36
|
38
|
Casamigos
|
83
|
90
|
93
|
Scotch malts
|
14
|
17
|
16
|
Cîroc vodka
|
4
|
6
|
7
|
Ketel
One(4)
|
12
|
12
|
14
|
Bulleit
|
12
|
16
|
17
|
Summary income statement
|
|
2021
|
Exchange
(a)
|
Acquisitions and disposals
(b)
|
Organic
movement(1)
|
Fair value remeasurement
(d)
|
Hyperinflation(1)
|
2022
|
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
Sales
|
19,153
|
(838)
|
38
|
3,567
|
-
|
528
|
22,448
|
Excise duties
|
(6,420)
|
617
|
(3)
|
(851)
|
-
|
(339)
|
(6,996)
|
Net sales
|
12,733
|
(221)
|
35
|
2,716
|
-
|
189
|
15,452
|
Cost of sales
|
(5,038)
|
127
|
(22)
|
(901)
|
(5)
|
(134)
|
(5,973)
|
Gross profit
|
7,695
|
(94)
|
13
|
1,815
|
(5)
|
55
|
9,479
|
Marketing
|
(2,163)
|
15
|
(25)
|
(532)
|
1
|
(17)
|
(2,721)
|
Other operating items
|
(1,786)
|
47
|
(4)
|
(288)
|
98
|
(28)
|
(1,961)
|
Operating profit before exceptional items
|
3,746
|
(32)
|
(16)
|
995
|
94
|
10
|
4,797
|
Exceptional operating items (c)
|
(15)
|
|
|
|
|
|
(388)
|
Operating profit
|
3,731
|
|
|
|
|
|
4,409
|
Non-operating items (c)
|
14
|
|
|
|
|
|
(17)
|
Net finance charges
|
(373)
|
|
|
|
|
|
(422)
|
Share of after tax results of associates and joint
ventures
|
334
|
|
|
|
|
|
417
|
Profit before taxation
|
3,706
|
|
|
|
|
|
4,387
|
Taxation (e)
|
(907)
|
|
|
|
|
|
(1,049)
|
Profit
for the year
|
2,799
|
|
|
|
|
|
3,338
|
|
Gains/(losses)
|
|
£ million
|
Translation impact
|
(37)
|
Transaction impact
|
5
|
Operating profit before exceptional items
|
(32)
|
Net
finance charges - translation impact
|
4
|
Net
finance charges - transaction impact
|
(3)
|
Net finance charges
|
1
|
Associates - translation impact
|
(19)
|
Profit before exceptional items and taxation
|
(50)
|
|
Year ended
30 June 2022
|
Year ended
30 June 2021
|
Exchange rates
|
|
|
Translation
£1 =
|
$1.33
|
$1.35
|
Transaction
£1 =
|
$1.29
|
$1.34
|
Translation
£1 =
|
€1.18
|
€1.13
|
Transaction
£1 =
|
€1.15
|
€1.14
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Net borrowings at the beginning of the year
|
(12,109)
|
(13,246)
|
Free cash flow (a)
|
2,783
|
3,037
|
Acquisitions (b)
|
(271)
|
(488)
|
Sale of businesses and brands
|
82
|
14
|
Share buyback programme (c)
|
(2,284)
|
(109)
|
Net sale of own shares for share schemes (d)
|
18
|
49
|
Purchase of treasury shares in respect of subsidiaries
|
(15)
|
-
|
Dividend paid to non-controlling interests
|
(81)
|
(77)
|
Net movements in bonds (e)
|
742
|
(216)
|
Purchase of shares of non-controlling interests (f)
|
-
|
(42)
|
Net movements in other borrowings (g)
|
79
|
(753)
|
Equity dividend paid
|
(1,718)
|
(1,646)
|
Net
decrease in cash and cash equivalents
|
(665)
|
(231)
|
Net
(increase)/decrease in bonds and other borrowings
|
(825)
|
967
|
Exchange differences (h)
|
(334)
|
598
|
Other non-cash items (i)
|
(204)
|
(197)
|
Net
borrowings at the end of the year
|
(14,137)
|
(12,109)
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Equity at the beginning of the year
|
8,431
|
8,440
|
Adjustment to 2021 closing equity in respect of hyperinflation in
Turkey (a)
|
251
|
-
|
Adjusted equity at the beginning of the year
|
8,682
|
8,440
|
Profit
for the year
|
3,338
|
2,799
|
Exchange adjustments (b)
|
799
|
(836)
|
Remeasurement of post employment plans net of taxation
|
497
|
(27)
|
Purchase of shares of non-controlling interests (c)
|
-
|
(42)
|
Hyperinflation adjustments net of taxation (a)
|
291
|
(12)
|
Associates' transactions with non-controlling interest
|
-
|
(91)
|
Dividend to non-controlling interests
|
(72)
|
(72)
|
Equity dividend paid
|
(1,718)
|
(1,646)
|
Share buyback programme (d)
|
(2,310)
|
(200)
|
Other reserve movements
|
7
|
118
|
Equity at the end of the year
|
9,514
|
8,431
|
|
|
Year ended 30 June 2022
|
Year ended 30 June 2021
|
|
Notes
|
£ million
|
£ million
|
Sales
|
2
|
22,448
|
19,153
|
Excise duties
|
|
(6,996)
|
(6,420)
|
Net sales
|
2
|
15,452
|
12,733
|
Cost of sales
|
|
(5,973)
|
(5,038)
|
Gross profit
|
|
9,479
|
7,695
|
Marketing
|
|
(2,721)
|
(2,163)
|
Other operating items
|
|
(2,349)
|
(1,801)
|
Operating profit
|
2
|
4,409
|
3,731
|
Non-operating items
|
3
|
(17)
|
14
|
Finance income
|
4
|
497
|
278
|
Finance charges
|
4
|
(919)
|
(651)
|
Share of after tax results of associates and joint
ventures
|
|
417
|
334
|
Profit before taxation
|
|
4,387
|
3,706
|
Taxation
|
5
|
(1,049)
|
(907)
|
Profit for the year
|
|
3,338
|
2,799
|
|
|
|
|
Attributable to:
|
|
|
|
Equity shareholders of the parent company
|
|
3,249
|
2,660
|
Non-controlling interests
|
|
89
|
139
|
|
|
3,338
|
2,799
|
|
|
|
|
Weighted average number of shares
|
|
million
|
million
|
Shares in issue excluding own shares
|
|
2,318
|
2,337
|
Dilutive potential ordinary shares
|
|
7
|
8
|
|
|
2,325
|
2,345
|
|
|
|
|
|
|
pence
|
pence
|
Basic earnings per share
|
|
140.2
|
113.8
|
Diluted earnings per share
|
|
139.7
|
113.4
|
|
|
|
|
|
Year ended 30 June 2022
|
Year ended30 June 2021
|
|
£ million
|
£ million
|
Other comprehensive income
|
|
|
Items that will not be recycled subsequently to the income
statement
|
|
|
Net remeasurement of post employment benefit plans
|
|
|
Group
|
616
|
16
|
Associates
and joint ventures
|
5
|
3
|
Non-controlling
interests
|
(1)
|
-
|
Tax on post employment benefit plans
|
(123)
|
(46)
|
Changes in the fair value of equity investments at fair value
through other comprehensive income
|
(12)
|
-
|
|
485
|
(27)
|
Items that may be recycled subsequently to the income
statement
|
|
|
Exchange differences on translation of foreign
operations
|
|
|
Group
|
1,128
|
(1,233)
|
Associates
and joint ventures
|
60
|
(240)
|
Non-controlling
interests
|
171
|
(173)
|
Net investment hedges
|
(623)
|
810
|
Exchange loss recycled to the income statement
|
|
|
On
disposal of foreign operations
|
63
|
-
|
Tax on exchange differences - group
|
(6)
|
(9)
|
Tax on exchange differences - non-controlling
interests
|
-
|
(1)
|
Effective portion of changes in fair value of cash flow
hedges
|
|
|
Hedge
of foreign currency debt of the group
|
233
|
(298)
|
Transaction
exposure hedging of the group
|
(172)
|
101
|
Hedges
by associates and joint ventures
|
(15)
|
(1)
|
Commodity
price risk hedging of the group
|
78
|
41
|
Recycled
to income statement - hedge of foreign currency debt of the
group
|
(239)
|
175
|
Recycled
to income statement - transaction exposure hedging of the
group
|
42
|
10
|
Recycled
to income statement - commodity price risk hedging of the
group
|
(46)
|
(2)
|
Tax on effective portion of changes in fair value of cash flow
hedges
|
32
|
(6)
|
Hyperinflation adjustments
|
365
|
(17)
|
Tax on hyperinflation adjustments
|
(74)
|
5
|
|
997
|
(838)
|
Other
comprehensive income/(loss), net of tax, for the year
|
1,482
|
(865)
|
Profit
for the year
|
3,338
|
2,799
|
Total
comprehensive income for the year
|
4,820
|
1,934
|
|
|
|
Attributable to:
|
|
|
Equity shareholders of the parent company
|
4,561
|
1,969
|
Non-controlling interests
|
259
|
(35)
|
Total
comprehensive income for the year
|
4,820
|
1,934
|
|
|
30 June 2022
|
30 June 2021
|
||
|
Notes
|
£ million
|
£ million
|
£ million
|
£ million
|
Non-current assets
|
|
|
|
|
|
Intangible assets
|
12
|
11,902
|
|
10,764
|
|
Property, plant and equipment
|
|
5,848
|
|
4,849
|
|
Biological assets
|
|
94
|
|
66
|
|
Investments in associates and joint ventures
|
|
3,652
|
|
3,308
|
|
Other investments
|
|
37
|
|
40
|
|
Other receivables
|
|
37
|
|
36
|
|
Other financial assets
|
|
345
|
|
327
|
|
Deferred tax assets
|
|
114
|
|
100
|
|
Post employment benefit assets
|
|
1,553
|
|
1,018
|
|
|
|
|
23,582
|
|
20,508
|
Current assets
|
|
|
|
|
|
Inventories
|
6
|
7,094
|
|
6,045
|
|
Trade and other receivables
|
|
2,933
|
|
2,385
|
|
Assets held for sale
|
14
|
222
|
|
-
|
|
Corporate tax receivables
|
5
|
149
|
|
145
|
|
Other financial assets
|
|
251
|
|
121
|
|
Cash and cash equivalents
|
7
|
2,285
|
|
2,749
|
|
|
|
|
12,934
|
|
11,445
|
Total assets
|
|
|
36,516
|
|
31,953
|
Current liabilities
|
|
|
|
|
|
Borrowings and bank overdrafts
|
7
|
(1,522)
|
|
(1,862)
|
|
Other financial liabilities
|
|
(444)
|
|
(257)
|
|
Share buyback liability
|
|
(117)
|
|
(91)
|
|
Trade and other payables
|
|
(5,887)
|
|
(4,648)
|
|
Liabilities held for sale
|
14
|
(61)
|
|
-
|
|
Corporate tax payables
|
5
|
(252)
|
|
(146)
|
|
Provisions
|
|
(159)
|
|
(138)
|
|
|
|
|
(8,442)
|
|
(7,142)
|
Non-current liabilities
|
|
|
|
|
|
Borrowings
|
7
|
(14,498)
|
|
(12,865)
|
|
Other financial liabilities
|
|
(703)
|
|
(384)
|
|
Other payables
|
|
(380)
|
|
(338)
|
|
Provisions
|
|
(258)
|
|
(274)
|
|
Deferred tax liabilities
|
|
(2,319)
|
|
(1,945)
|
|
Post employment benefit liabilities
|
|
(402)
|
|
(574)
|
|
|
|
|
(18,560)
|
|
(16,380)
|
Total liabilities
|
|
|
(27,002)
|
|
(23,522)
|
Net assets
|
|
|
9,514
|
|
8,431
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share capital
|
|
723
|
|
741
|
|
Share premium
|
|
1,351
|
|
1,351
|
|
Other reserves
|
|
2,174
|
|
1,621
|
|
Retained earnings
|
|
3,550
|
|
3,184
|
|
Equity attributable to equity shareholders of the parent
company
|
|
|
7,798
|
|
6,897
|
Non-controlling interests
|
|
|
1,716
|
|
1,534
|
Total equity
|
|
|
9,514
|
|
8,431
|
|
|
|
|
|
|
|
|
|
|
Retained earnings/(deficit)
|
|
|
|
||
|
Share
capital
|
Share
premium
|
Other reserves
|
Own shares
|
Other retained earnings
|
Total
|
Equity attributable to parent company shareholders
|
Non-controlling interests
|
Total
equity
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
|
At 30 June 2020
|
742
|
1,351
|
2,272
|
(1,936)
|
4,343
|
2,407
|
6,772
|
1,668
|
8,440
|
Profit for the year
|
-
|
-
|
-
|
-
|
2,660
|
2,660
|
2,660
|
139
|
2,799
|
Other comprehensive loss
|
-
|
-
|
(652)
|
-
|
(39)
|
(39)
|
(691)
|
(174)
|
(865)
|
Total comprehensive (loss)/income for the year
|
-
|
-
|
(652)
|
-
|
2,621
|
2,621
|
1,969
|
(35)
|
1,934
|
Employee share schemes
|
-
|
-
|
-
|
59
|
(10)
|
49
|
49
|
-
|
49
|
Share-based incentive plans
|
-
|
-
|
-
|
-
|
49
|
49
|
49
|
-
|
49
|
Share-based incentive plans in respect of associates
|
-
|
-
|
-
|
-
|
3
|
3
|
3
|
-
|
3
|
Tax on share-based incentive plans
|
-
|
-
|
-
|
-
|
9
|
9
|
9
|
-
|
9
|
Purchase of non-controlling interests
|
-
|
-
|
-
|
-
|
(15)
|
(15)
|
(15)
|
(27)
|
(42)
|
Associates' transactions with non-controlling
interests
|
-
|
-
|
-
|
-
|
(91)
|
(91)
|
(91)
|
-
|
(91)
|
Change in fair value of put option
|
-
|
-
|
-
|
-
|
(2)
|
(2)
|
(2)
|
-
|
(2)
|
Share buyback programme
|
(1)
|
-
|
1
|
-
|
(200)
|
(200)
|
(200)
|
-
|
(200)
|
Dividend declared for the year
|
-
|
-
|
-
|
-
|
(1,646)
|
(1,646)
|
(1,646)
|
(72)
|
(1,718)
|
At 30 June 2021
|
741
|
1,351
|
1,621
|
(1,877)
|
5,061
|
3,184
|
6,897
|
1,534
|
8,431
|
Adjustment to 2021 closing equity in respect of hyperinflation in
Turkey
|
-
|
-
|
-
|
-
|
251
|
251
|
251
|
-
|
251
|
Adjusted opening balance
|
741
|
1,351
|
1,621
|
(1,877)
|
5,312
|
3,435
|
7,148
|
1,534
|
8,682
|
Profit for the year
|
-
|
-
|
-
|
-
|
3,249
|
3,249
|
3,249
|
89
|
3,338
|
Other comprehensive income
|
-
|
-
|
535
|
-
|
777
|
777
|
1,312
|
170
|
1,482
|
Total comprehensive income for the year
|
-
|
-
|
535
|
-
|
4,026
|
4,026
|
4,561
|
259
|
4,820
|
Employee share schemes
|
-
|
-
|
-
|
39
|
50
|
89
|
89
|
-
|
89
|
Share-based incentive plans
|
-
|
-
|
-
|
-
|
59
|
59
|
59
|
-
|
59
|
Share-based incentive plans in respect of associates
|
-
|
-
|
-
|
-
|
4
|
4
|
4
|
-
|
4
|
Tax on share-based incentive plans
|
-
|
-
|
-
|
-
|
9
|
9
|
9
|
-
|
9
|
Share based payments and purchase of own shares in respect of
subsidiaries
|
-
|
-
|
-
|
-
|
(11)
|
(11)
|
(11)
|
(6)
|
(17)
|
Unclaimed dividend
|
-
|
-
|
-
|
-
|
3
|
3
|
3
|
1
|
4
|
Change in fair value of put option
|
-
|
-
|
-
|
-
|
(34)
|
(34)
|
(34)
|
-
|
(34)
|
Share buyback programme
|
(18)
|
-
|
18
|
-
|
(2,310)
|
(2,310)
|
(2,310)
|
-
|
(2,310)
|
Dividend declared for the year
|
-
|
-
|
-
|
-
|
(1,720)
|
(1,720)
|
(1,720)
|
(72)
|
(1,792)
|
At 30 June 2022
|
723
|
1,351
|
2,174
|
(1,838)
|
5,388
|
3,550
|
7,798
|
1,716
|
9,514
|
|
Year
ended 30 June 2022
|
|
Year ended 30 June 2021
|
||||
|
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Profit for the year
|
3,338
|
|
|
|
2,799
|
|
|
Taxation
|
1,049
|
|
|
|
907
|
|
|
Share of after tax results of associates and joint
ventures
|
(417)
|
|
|
|
(334)
|
|
|
Net finance charges
|
422
|
|
|
|
373
|
|
|
Non-operating items
|
17
|
|
|
|
(14)
|
|
|
Operating profit
|
|
|
4,409
|
|
|
|
3,731
|
Increase in inventories
|
(740)
|
|
|
|
(443)
|
|
|
Increase in trade and other receivables
|
(378)
|
|
|
|
(446)
|
|
|
Increase in trade and other payables and provisions
|
939
|
|
|
|
1,220
|
|
|
Net (increase)/decrease in working capital
|
|
|
(179)
|
|
|
|
331
|
Depreciation, amortisation and impairment
|
828
|
|
|
|
447
|
|
|
Dividends received
|
190
|
|
|
|
290
|
|
|
Post employment payments less amounts included in operating
profit
|
(89)
|
|
|
|
(30)
|
|
|
Other items
|
53
|
|
|
|
88
|
|
|
|
|
|
982
|
|
|
|
795
|
Cash generated from operations
|
|
|
5,212
|
|
|
|
4,857
|
Interest received
|
110
|
|
|
|
89
|
|
|
Interest paid
|
(438)
|
|
|
|
(440)
|
|
|
Taxation paid
|
(949)
|
|
|
|
(852)
|
|
|
|
|
|
(1,277)
|
|
|
|
(1,203)
|
Net cash inflow from operating activities
|
|
|
3,935
|
|
|
|
3,654
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Disposal of property, plant and equipment and computer
software
|
17
|
|
|
|
13
|
|
|
Purchase of property, plant and equipment and computer
software
|
(1,097)
|
|
|
|
(626)
|
|
|
Movements in loans and other investments
|
(72)
|
|
|
|
(4)
|
|
|
Sale of businesses and brands
|
82
|
|
|
|
14
|
|
|
Acquisition of businesses
|
(271)
|
|
|
|
(488)
|
|
|
Net cash outflow from investing activities
|
|
|
(1,341)
|
|
|
|
(1,091)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Share buyback programme
|
(2,284)
|
|
|
|
(109)
|
|
|
Net sale of own shares for share schemes
|
18
|
|
|
|
49
|
|
|
Purchase of treasury shares in respect of subsidiaries
|
(15)
|
|
|
|
-
|
|
|
Dividends paid to non-controlling interests
|
(81)
|
|
|
|
(77)
|
|
|
Proceeds from bonds
|
2,263
|
|
|
|
1,031
|
|
|
Repayment of bonds
|
(1,521)
|
|
|
|
(1,247)
|
|
|
Purchase of shares of non-controlling interests
|
-
|
|
|
|
(42)
|
|
|
Cash
inflow from other borrowings(1)
|
503
|
|
|
|
34
|
|
|
Cash
outflow from other borrowings(1)
|
(424)
|
|
|
|
(787)
|
|
|
Equity dividends paid
|
(1,718)
|
|
|
|
(1,646)
|
|
|
Net cash outflow from financing activities
|
|
|
(3,259)
|
|
|
|
(2,794)
|
|
|
|
|
|
|
|
|
Net decrease in net cash and cash equivalents
|
|
|
(665)
|
|
|
|
(231)
|
Exchange differences
|
|
|
239
|
|
|
|
(285)
|
Net
cash and cash equivalents at beginning of the year
|
|
|
2,637
|
|
|
|
3,153
|
Net
cash and cash equivalents at end of the year
|
|
|
2,211
|
|
|
|
2,637
|
|
|
|
|
|
|
|
|
Net cash and cash equivalents consist of:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
2,285
|
|
|
|
2,749
|
Bank overdrafts
|
|
|
(74)
|
|
|
|
(112)
|
|
|
|
2,211
|
|
|
|
2,637
|
|
North America
|
Europe
|
Asia
Pacific
|
Africa
|
Latin America and Caribbean
|
SC&P
|
Eliminate
inter-
segment
sales
|
Total
operating
segments
|
Corporate
and other
|
Total
|
Year ended 30 June 2022
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
Sales
|
6,682
|
5,740
|
5,624
|
2,403
|
1,945
|
2,010
|
(2,010)
|
22,394
|
54
|
22,448
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
At
budgeted exchange rates(1)
|
5,955
|
3,258
|
2,879
|
1,699
|
1,486
|
2,095
|
(2,016)
|
15,356
|
55
|
15,411
|
Acquisitions and disposals
|
34
|
23
|
-
|
15
|
3
|
-
|
-
|
75
|
-
|
75
|
SC&P allocation
|
9
|
46
|
9
|
3
|
12
|
(79)
|
-
|
-
|
-
|
-
|
Retranslation to actual exchange rates
|
97
|
(304)
|
(4)
|
(35)
|
24
|
(6)
|
6
|
(222)
|
(1)
|
(223)
|
Hyperinflation
|
-
|
189
|
-
|
-
|
-
|
-
|
-
|
189
|
-
|
189
|
Net sales
|
6,095
|
3,212
|
2,884
|
1,682
|
1,525
|
2,010
|
(2,010)
|
15,398
|
54
|
15,452
|
Operating profit/(loss)
|
|
|
|
|
|
|
|
|
|
|
At
budgeted exchange rates(1)
|
2,388
|
1,086
|
703
|
346
|
528
|
(22)
|
-
|
5,029
|
(256)
|
4,773
|
Acquisitions and disposals
|
(28)
|
11
|
-
|
(10)
|
-
|
-
|
-
|
(27)
|
-
|
(27)
|
SC&P allocation
|
(1)
|
(18)
|
(2)
|
(1)
|
-
|
22
|
-
|
-
|
-
|
-
|
Fair value remeasurement of contingent considerations, equity
option and earn out arrangements
|
32
|
36
|
-
|
-
|
(3)
|
-
|
-
|
65
|
-
|
65
|
Fair value remeasurement of biological assets
|
-
|
-
|
-
|
-
|
(5)
|
-
|
-
|
(5)
|
-
|
(5)
|
Retranslation to actual exchange rates
|
63
|
(108)
|
10
|
(20)
|
18
|
-
|
-
|
(37)
|
18
|
(19)
|
Hyperinflation
|
-
|
10
|
-
|
-
|
-
|
-
|
-
|
10
|
-
|
10
|
Operating profit/(loss) before exceptional items
|
2,454
|
1,017
|
711
|
315
|
538
|
-
|
-
|
5,035
|
(238)
|
4,797
|
Exceptional items
|
(1)
|
(146)
|
(241)
|
-
|
-
|
-
|
-
|
(388)
|
-
|
(388)
|
Operating profit/(loss)
|
2,453
|
871
|
470
|
315
|
538
|
-
|
-
|
4,647
|
(238)
|
4,409
|
Non-operating items
|
|
|
|
|
|
|
|
|
|
(17)
|
Net finance charges
|
|
|
|
|
|
|
|
|
|
(422)
|
Share of after tax results of associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
417
|
Profit before taxation
|
|
|
|
|
|
|
|
|
|
4,387
|
|
North America
|
Europe
|
Asia
Pacific
|
Africa
|
Latin America and Caribbean
|
SC&P
|
Eliminate
inter-
segment
sales
|
Total
operating
segments
|
Corporate
and other
|
Total
|
Year ended 30 June 2021
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
Sales
|
5,803
|
4,795
|
5,146
|
2,020
|
1,369
|
1,537
|
(1,537)
|
19,133
|
20
|
19,153
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
At
budgeted exchange rates(1)
|
5,527
|
2,579
|
2,561
|
1,541
|
1,176
|
1,627
|
(1,548)
|
13,463
|
20
|
13,483
|
Acquisitions and disposals
|
28
|
2
|
-
|
5
|
-
|
-
|
-
|
35
|
-
|
35
|
SC&P allocation
|
9
|
45
|
9
|
3
|
13
|
(79)
|
-
|
-
|
-
|
-
|
Retranslation to actual exchange rates
|
(355)
|
(68)
|
(82)
|
(137)
|
(143)
|
(11)
|
11
|
(785)
|
-
|
(785)
|
Net sales
|
5,209
|
2,558
|
2,488
|
1,412
|
1,046
|
1,537
|
(1,537)
|
12,713
|
20
|
12,733
|
Operating profit/(loss)
|
|
|
|
|
|
|
|
|
|
|
At
budgeted exchange rates(1)
|
2,469
|
728
|
628
|
228
|
422
|
(97)
|
-
|
4,378
|
(218)
|
4,160
|
Acquisitions and disposals
|
(18)
|
(3)
|
-
|
-
|
-
|
-
|
-
|
(21)
|
-
|
(21)
|
SC&P allocation
|
(30)
|
(32)
|
(5)
|
(3)
|
(27)
|
97
|
-
|
-
|
-
|
-
|
Fair value remeasurement of contingent considerations, equity
option and earn out arrangements
|
(9)
|
(27)
|
-
|
-
|
-
|
-
|
-
|
(36)
|
-
|
(36)
|
Retranslation to actual exchange rates
|
(175)
|
(31)
|
(15)
|
(54)
|
(92)
|
-
|
-
|
(367)
|
10
|
(357)
|
Operating profit/(loss) before exceptional items
|
2,237
|
635
|
608
|
171
|
303
|
-
|
-
|
3,954
|
(208)
|
3,746
|
Exceptional items
|
-
|
(15)
|
-
|
-
|
-
|
-
|
-
|
(15)
|
-
|
(15)
|
Operating profit/(loss)
|
2,237
|
620
|
608
|
171
|
303
|
-
|
-
|
3,939
|
(208)
|
3,731
|
Non-operating items
|
|
|
|
|
|
|
|
|
|
14
|
Net finance charges
|
|
|
|
|
|
|
|
|
|
(373)
|
Share of after tax results of associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
334
|
Profit before taxation
|
|
|
|
|
|
|
|
|
|
3,706
|
|
Category analysis
|
Geographical analysis
|
|||||||||
Year ended 30 June 2022
|
Spirits
£ million
|
Beer
£ million
|
Ready to drink
£ million
|
Other
£ million
|
Total
£ million
|
United
States
£ million
|
India
£ million
|
Great
Britain
£ million
|
Nether-
lands
£ million
|
Rest of
world
£ million
|
Total
£ million
|
Sales(1)
|
18,164
|
3,128
|
882
|
274
|
22,448
|
6,327
|
3,219
|
2,142
|
89
|
10,671
|
22,448
|
Year ended 30 June 2021
|
|
|
|
|
|
|
|
|
|
|
|
Sales(1)
|
15,634
|
2,562
|
741
|
216
|
19,153
|
5,441
|
3,011
|
1,822
|
70
|
8,809
|
19,153
|
|
Year
ended
30 June
2022
|
Year
ended
30 June
2021
|
|
£ million
|
£ million
|
Exceptional operating items
|
|
|
Brand, goodwill, tangible and other assets impairment
|
(336)
|
-
|
Winding down Russian operations
|
(50)
|
-
|
Donations
|
(2)
|
(5)
|
Ongoing litigation in Turkey
|
-
|
(15)
|
Guaranteed minimum pension equalisation
|
-
|
(5)
|
Obsolete inventories
|
-
|
7
|
Substitution drawback
|
-
|
3
|
|
(388)
|
(15)
|
Non-operating items
|
|
|
Sale of businesses and brands
|
|
|
Meta
Abo Brewery
|
(95)
|
-
|
Windsor
business
|
(19)
|
-
|
Picon
brand
|
91
|
-
|
United
National Breweries
|
6
|
10
|
USL
businesses
|
-
|
3
|
Portfolio
of 19 brands
|
-
|
1
|
|
(17)
|
14
|
|
|
|
Exceptional items before taxation
|
(405)
|
(1)
|
|
|
|
Items included in taxation
|
|
|
Tax on exceptional operating items
|
54
|
4
|
Tax on exceptional non-operating items
|
(23)
|
-
|
Exceptional taxation
|
-
|
(88)
|
|
31
|
(84)
|
|
|
|
Total exceptional items
|
(374)
|
(85)
|
|
|
|
Attributable to:
|
|
|
Equity shareholders of the parent company
|
(271)
|
(86)
|
Non-controlling interests
|
(103)
|
1
|
Total exceptional items
|
(374)
|
(85)
|
|
Year
ended
30 June
2022
|
|
Year
ended
30 June
2021
|
|
£ million
|
|
£ million
|
Interest income
|
127
|
|
119
|
Fair value gain on financial instruments
|
341
|
|
124
|
Total interest income
|
468
|
|
243
|
Interest charge on bank loans, bonds and overdrafts
|
(371)
|
|
(365)
|
Interest charge on leases
|
(12)
|
|
(16)
|
Fair value loss on financial instruments
|
(346)
|
|
(126)
|
Interest charge on other borrowings
|
(92)
|
|
(84)
|
Total interest charges
|
(821)
|
|
(591)
|
Net interest charges
|
(353)
|
|
(348)
|
|
|
|
|
Net finance income in respect of post employment plans in
surplus
|
22
|
|
18
|
Hyperinflation adjustment in respect of Venezuela (a)
|
1
|
|
2
|
Interest income in respect of direct and indirect tax
|
2
|
|
15
|
Unwinding of discounts
|
4
|
|
-
|
Total other finance income
|
29
|
|
35
|
Foreign exchange revaluation of monetary items in respect of
Lebanon (a)
|
(3)
|
|
(8)
|
Net finance charge in respect of post employment plans in
deficit
|
(12)
|
|
(13)
|
Unwinding of discounts
|
(11)
|
|
(20)
|
Interest charge in respect of direct and indirect tax
|
(16)
|
|
(11)
|
Change in financial liability (Level 3)
|
(20)
|
|
(7)
|
Hyperinflation adjustment in respect of Turkey (a)
|
(34)
|
|
-
|
Guarantee
fees
|
(1)
|
|
(1)
|
Other finance charges
|
(1)
|
|
-
|
Total other finance charges
|
(98)
|
|
(60)
|
Net other finance charges
|
(69)
|
|
(25)
|
|
Year ended 30 June 2022
|
Year ended 30 June 2021
|
||
|
At estimated exchange rate
|
At official reference exchange rate
|
At
estimated
exchange
rate(1)
|
At
official reference
exchange
rate(1)
|
|
759
VES/£
|
7
VES/£
|
237
VES/£
|
4
VES/£
|
|
£ million
|
£ million
|
£ million
|
£ million
|
Net sales
|
-
|
15
|
-
|
4
|
Operating (loss)/profit
|
(1)
|
(1)
|
(1)
|
11
|
Other finance income - hyperinflation adjustment
|
1
|
157
|
2
|
122
|
Net cash (outflow)/inflow from operating activities
|
-
|
(5)
|
-
|
9
|
Net assets
|
41
|
4,606
|
38
|
2,016
|
|
30 June 2022
|
30 June 2021
|
|
£ million
|
£ million
|
Raw materials and consumables
|
489
|
348
|
Work in progress
|
86
|
60
|
Maturing inventories
|
5,229
|
4,668
|
Finished goods and goods for resale
|
1,290
|
969
|
|
7,094
|
6,045
|
|
30 June 2022
|
30 June 2021
|
|
£ million
|
£ million
|
Borrowings due within one year and bank overdrafts
|
(1,522)
|
(1,862)
|
Borrowings due after one year
|
(14,498)
|
(12,865)
|
Fair value of foreign currency forwards and swaps
|
356
|
169
|
Fair value of interest rate hedging instruments
|
(283)
|
63
|
Lease liabilities
|
(475)
|
(363)
|
|
(16,422)
|
(14,858)
|
Cash and cash equivalents
|
2,285
|
2,749
|
|
(14,137)
|
(12,109)
|
|
Year
ended
30 June
2022
|
Year
ended
30 June
2021
|
|
£ million
|
£ million
|
Net
decrease in cash and cash equivalents before exchange
|
(665)
|
(231)
|
Net
(increase)/decrease in bonds and other borrowings(1)
|
(825)
|
967
|
Net
(increase)/decrease in net borrowings from cash flows
|
(1,490)
|
736
|
Exchange differences on net borrowings
|
(334)
|
598
|
Other
non-cash items(2)
|
(204)
|
(197)
|
Net
borrowings at beginning of the year
|
(12,109)
|
(13,246)
|
Net
borrowings at end of the year
|
(14,137)
|
(12,109)
|
|
30 June 2022
|
30 June 2021
|
|
£ million
|
£ million
|
Derivative assets
|
480
|
443
|
Derivative liabilities
|
(456)
|
(129)
|
Valuation techniques based on observable market input (Level
2)
|
24
|
314
|
Financial assets - other
|
184
|
138
|
Financial liabilities - other
|
(587)
|
(578)
|
Valuation techniques based on unobservable market input (Level
3)
|
(403)
|
(440)
|
|
Zacapafinancialliability
|
Contingent
consideration recognised on acquisition of businesses(1)
|
Zacapafinancialliability
|
Contingent
consideration recognised on acquisition of businesses(1)
|
|
Year
ended
30 June
2022
|
Year
ended
30 June
2022
|
Year
ended
30 June
2021
|
Year
ended
30 June
2021
|
|
£ million
|
£ million
|
£ million
|
£ million
|
At the
beginning of the year
|
(149)
|
(429)
|
(167)
|
(249)
|
Net (losses)/gains included in the income statement
|
(20)
|
62
|
(7)
|
(47)
|
Net (losses)/gains included in exchange in other comprehensive
income
|
(26)
|
(39)
|
21
|
31
|
Net losses included in retained earnings
|
(34)
|
-
|
(2)
|
-
|
Acquisitions
|
-
|
(70)
|
-
|
(253)
|
Settlement of liabilities
|
13
|
105
|
6
|
89
|
At the
end of the year
|
(216)
|
(371)
|
(149)
|
(429)
|
|
Year
ended
30
June 2022
|
Year
ended
30 June
2021
|
|
£ million
|
£ million
|
Amounts recognised as distributions to equity
shareholders
|
|
|
Final dividend for the year ended 30 June 2021 of 44.59 pence per
share (2020 - 42.47
pence)
|
1,040
|
992
|
Interim
dividend for the year ended of 30 June 2022 of
29.36 pence per share (2021 - 27.96
pence)
|
680
|
654
|
|
1,720
|
1,646
|
|
Total
|
|
£ million
|
Brands and other intangibles
|
120
|
Inventories
|
6
|
Other working capital
|
3
|
Deferred tax
|
(31)
|
Cash
|
1
|
Fair value of assets and liabilities
|
99
|
Goodwill arising on acquisition
|
70
|
Settlement of pre-existing relationship
|
(1)
|
Step acquisitions
|
(6)
|
Consideration payable
|
162
|
Satisfied by:
|
|
Cash
consideration paid
|
(88)
|
Contingent
consideration payable
|
(70)
|
Deferred
consideration payable
|
(4)
|
|
(162)
|
|
Consideration
|
|
£ million
|
Acquisitions in the year - subsidiaries
|
|
Cash
consideration paid
|
(88)
|
Prior year acquisitions - subsidiaries
|
|
Contingent
consideration paid for Casamigos
|
(83)
|
Other
consideration
|
(36)
|
Investments in associates
|
|
Cash
consideration paid
|
(4)
|
Capital
injection
|
(61)
|
Cash acquired
|
1
|
Net cash outflow on acquisition of businesses
|
(271)
|
Purchase of shares of non-controlling interests
|
-
|
Total net cash outflow
|
(271)
|
|
|
|
Increase in discount rate
|
Decrease in terminal growth rate
|
Decrease in annual growth rate in forecast period
2023-2029
|
Decrease in cash flows
|
Decrease in future volume forecast
|
Further devaluation of local currency
|
||||||
|
Carrying value of CGU
£ million
|
Headroom
£ million
|
Reasonably possible change
|
Potential impairment charge
£ million
|
Reasonably possible change
|
Potential impairment charge
£ million
|
Reasonably possible change
|
Potential impairment charge
£ million
|
Reasonably possible change
|
Potential impairment charge
£ million
|
Reasonably possible change
|
Potential impairment charge
£ million
|
Reasonably possible change
|
Potential impairment charge
£ million
|
McDowell's No.1
|
892
|
-
|
1ppt
|
(92)
|
n/a
|
n/a
|
2ppt
|
(121)
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
Bell's
|
145
|
-
|
3ppt
|
(27)
|
1ppt
|
(9)
|
n/a
|
n/a
|
10%
|
(15)
|
n/a
|
n/a
|
n/a
|
n/a
|
Yenì Raki
|
346
|
44
|
7ppt
|
(95)
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
4%
|
(20)
|
n/a
|
n/a
|
Turkey
|
688
|
14
|
7ppt
|
(249)
|
1ppt
|
(13)
|
n/a
|
n/a
|
10%
|
(88)
|
1%
|
(124)
|
66%
|
(69)
|
|
Total
|
|
£ million
|
Sale consideration
|
|
Cash received
|
106
|
Overdraft disposed of
|
2
|
Transaction and other directly attributable costs paid
|
(26)
|
Net cash received
|
82
|
Transaction costs payable
|
(16)
|
|
66
|
Net assets disposed of
|
|
Goodwill
|
(14)
|
Property, plant and equipment
|
(11)
|
Inventories
|
(4)
|
Other working capital
|
15
|
Other borrowings
|
1
|
Corporation tax
|
(5)
|
Deferred tax
|
(2)
|
|
(20)
|
Exchange recycled from other comprehensive income
|
(63)
|
Loss on disposal before taxation
|
(17)
|
Taxation
|
(23)
|
Loss on disposal after taxation
|
(40)
|
|
Windsorbusiness£ million
|
USL Popularbrands£ million
|
2022£ million
|
Intangible assets
|
145
|
20
|
165
|
Property, plant and equipment
|
3
|
9
|
12
|
Other investments
|
1
|
-
|
1
|
Inventories
|
6
|
15
|
21
|
Trade and other receivables
|
1
|
22
|
23
|
Assets held for sale
|
156
|
66
|
222
|
Trade and other payables
|
(5)
|
(13)
|
(18)
|
Corporation tax
|
(6)
|
-
|
(6)
|
Deferred tax
|
(28)
|
(7)
|
(35)
|
Leases
|
(2)
|
-
|
(2)
|
Liabilities held for sale
|
(41)
|
(20)
|
(61)
|
Total
|
115
|
46
|
161
|
|
North America
million
|
Europe
million
|
Asia
Pacific
million
|
Africa
million
|
Latin America
and Caribbean
million
|
Corporate
million
|
Total
million
|
Volume (equivalent units)
|
|
|
|
|
|
|
|
2019 reported
|
49.4
|
45.4
|
95.1
|
33.6
|
22.4
|
-
|
245.9
|
Disposals
|
(2.1)
|
(0.1)
|
-
|
(2.7)
|
-
|
-
|
(4.9)
|
2019 adjusted
|
47.3
|
45.3
|
95.1
|
30.9
|
22.4
|
-
|
241.0
|
Organic movement (2020)
|
0.1
|
(5.2)
|
(14.5)
|
(4.0)
|
(3.4)
|
-
|
(27.0)
|
Organic movement (2021)
|
5.1
|
2.9
|
7.0
|
4.8
|
4.1
|
-
|
23.9
|
2020 and 2021 movement on a constant basis
|
5.2
|
(2.3)
|
(7.5)
|
0.8
|
0.7
|
-
|
(3.1)
|
|
|
|
|
|
|
|
|
Volume (equivalent units)
|
|
|
|
|
|
|
|
2021 reported
|
53.2
|
42.7
|
87.6
|
31.8
|
23.1
|
-
|
238.4
|
Disposals(2)
|
-
|
(0.7)
|
-
|
(0.4)
|
-
|
-
|
(1.1)
|
2021 adjusted
|
53.2
|
42.0
|
87.6
|
31.4
|
23.1
|
-
|
237.3
|
Organic movement
|
1
|
9
|
7
|
4
|
4
|
-
|
24.5
|
Acquisitions
and disposals(2)
|
0.2
|
0.7
|
-
|
0.3
|
-
|
-
|
1.2
|
2022 reported
|
54.8
|
51.2
|
94.2
|
35.7
|
27.1
|
-
|
263.0
|
Organic movement %
|
3
|
20
|
8
|
13
|
17
|
-
|
10
|
|
|
|
|
|
|
|
|
2019 to 2022 reported growth %
|
11
|
13
|
(1)
|
6
|
21
|
-
|
7
|
2019 to 2022 growth on a constant basis %
|
13
|
15
|
(1)
|
16
|
21
|
-
|
9
|
|
North America
£ million
|
Europe
£ million
|
Asia
Pacific
£ million
|
Africa
£ million
|
Latin America
and Caribbean
£ million
|
Corporate
£ million
|
Total
£ million
|
Sales
|
|
|
|
|
|
|
|
2021 reported
|
5,803
|
4,795
|
5,146
|
2,020
|
1,369
|
20
|
19,153
|
Exchange
|
1
|
(1)
|
(8)
|
2
|
3
|
-
|
(3)
|
Disposals(2)
|
-
|
(21)
|
-
|
(30)
|
-
|
-
|
(51)
|
2021 adjusted
|
5,804
|
4,773
|
5,138
|
1,992
|
1,372
|
20
|
19,099
|
Organic movement
|
735
|
1,298
|
525
|
433
|
541
|
35
|
3,567
|
Acquisitions
and disposals(2)
|
38
|
26
|
-
|
20
|
5
|
-
|
89
|
Exchange
|
105
|
(885)
|
(39)
|
(42)
|
27
|
(1)
|
(835)
|
Hyperinflation
|
-
|
528
|
-
|
-
|
-
|
-
|
528
|
2022 reported
|
6,682
|
5,740
|
5,624
|
2,403
|
1,945
|
54
|
22,448
|
Organic movement %
|
13
|
27
|
10
|
22
|
39
|
175
|
19
|
|
North America
£ million
|
Europe
£ million
|
Asia
Pacific
£ million
|
Africa
£ million
|
Latin America
and Caribbean
£ million
|
Corporate
£ million
|
Total
£ million
|
Net sales
|
|
|
|
|
|
|
|
2019 reported
|
4,460
|
2,939
|
2,688
|
1,597
|
1,130
|
53
|
12,867
|
Exchange
|
(34)
|
(19)
|
1
|
(2)
|
4
|
2
|
(48)
|
Reclassification
|
-
|
-
|
-
|
-
|
(10)
|
-
|
(10)
|
Disposals
|
(75)
|
(1)
|
(1)
|
(91)
|
(1)
|
-
|
(169)
|
2019 adjusted
|
4,351
|
2,919
|
2,688
|
1,504
|
1,123
|
55
|
12,640
|
Organic movement (2020)
|
105
|
(358)
|
(423)
|
(200)
|
(169)
|
(16)
|
(1,061)
|
Organic movement (2021)
|
929
|
108
|
308
|
258
|
275
|
(18)
|
1,860
|
2020 and 2021 movement on a constant basis
|
1,034
|
(250)
|
(115)
|
58
|
106
|
(34)
|
799
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
2021 reported
|
5,209
|
2,558
|
2,488
|
1,412
|
1,046
|
20
|
12,733
|
Exchange(1)
|
1
|
-
|
(2)
|
2
|
1
|
-
|
2
|
Disposals(2)
|
-
|
(20)
|
-
|
(20)
|
-
|
-
|
(40)
|
2021 adjusted
|
5,210
|
2,538
|
2,486
|
1,394
|
1,047
|
20
|
12,695
|
Organic movement
|
754
|
766
|
402
|
308
|
451
|
35
|
2,716
|
Acquisitions
and disposals(2)
|
34
|
23
|
-
|
15
|
3
|
-
|
75
|
Exchange(1)
|
97
|
(304)
|
(4)
|
(35)
|
24
|
(1)
|
(223)
|
Hyperinflation
|
-
|
189
|
-
|
-
|
-
|
-
|
189
|
2022 reported
|
6,095
|
3,212
|
2,884
|
1,682
|
1,525
|
54
|
15,452
|
Organic movement %
|
14
|
30
|
16
|
22
|
43
|
175
|
21
|
|
|
|
|
|
|
|
|
2019 to 2022 reported growth %
|
37
|
9
|
7
|
5
|
35
|
2
|
20
|
2019 to 2022 growth on a constant basis %
|
41
|
18
|
11
|
24
|
50
|
2
|
28
|
|
North America
£ million
|
Europe
£ million
|
Asia
Pacific
£ million
|
Africa
£ million
|
Latin America
and Caribbean
£ million
|
Corporate
£ million
|
Total
£ million
|
Marketing
|
|
|
|
|
|
|
|
2021 reported
|
936
|
473
|
418
|
168
|
161
|
7
|
2,163
|
Exchange
|
-
|
(1)
|
1
|
(3)
|
-
|
(1)
|
(4)
|
Disposals(2)
|
-
|
(1)
|
-
|
(2)
|
-
|
-
|
(3)
|
2021 adjusted
|
936
|
471
|
419
|
163
|
161
|
6
|
2,156
|
Organic movement
|
222
|
122
|
68
|
36
|
79
|
5
|
532
|
Acquisitions
and disposals(2)
|
24
|
1
|
-
|
2
|
1
|
-
|
28
|
Fair value remeasurement of contingent considerations, equity
option and earn out arrangements
|
(1)
|
-
|
-
|
-
|
-
|
-
|
(1)
|
Exchange
|
19
|
(34)
|
3
|
(2)
|
2
|
1
|
(11)
|
Hyperinflation
|
-
|
17
|
-
|
-
|
-
|
-
|
17
|
2022 reported
|
1,200
|
577
|
490
|
199
|
243
|
12
|
2,721
|
Organic movement %
|
24
|
26
|
16
|
22
|
49
|
83
|
25
|
|
North America
£ million
|
Europe
£ million
|
Asia
Pacific
£ million
|
Africa
£ million
|
Latin America
and Caribbean
£ million
|
Corporate
£ million
|
Total
£ million
|
Operating profit before exceptional items
|
|
|
|
|
|
|
|
2019 reported
|
|
|
|
|
|
|
4,116
|
Exchange
|
|
|
|
|
|
|
-
|
Disposal
|
|
|
|
|
|
|
(29)
|
2019 adjusted
|
|
|
|
|
|
|
4,087
|
Organic movement (2020)
|
|
|
|
|
|
|
(589)
|
Organic movement (2021)
|
|
|
|
|
|
|
627
|
2020 and 2021 movement on a constant basis
|
|
|
|
|
|
|
38
|
|
|
|
|
|
|
|
|
Operating profit before exceptional items
|
|
|
|
|
|
|
|
2021 reported
|
2,237
|
635
|
608
|
171
|
303
|
(208)
|
3,746
|
Exchange(1)
|
(14)
|
(2)
|
(5)
|
10
|
7
|
(9)
|
(13)
|
Fair value remeasurement of contingent considerations and equity
option
|
7
|
27
|
-
|
-
|
-
|
-
|
34
|
Acquisitions
and disposals(2)
|
9
|
(10)
|
-
|
12
|
-
|
-
|
11
|
2021 adjusted
|
2,239
|
650
|
603
|
193
|
310
|
(217)
|
3,778
|
Organic movement
|
148
|
418
|
98
|
152
|
218
|
(39)
|
995
|
Acquisitions
and disposals(2)
|
(28)
|
11
|
-
|
(10)
|
-
|
-
|
(27)
|
Fair value remeasurement of contingent considerations, equity
option and earn out arrangements
|
32
|
36
|
-
|
-
|
(3)
|
-
|
65
|
Fair value remeasurement of biological assets
|
-
|
-
|
-
|
-
|
(5)
|
-
|
(5)
|
Exchange(1)
|
63
|
(108)
|
10
|
(20)
|
18
|
18
|
(19)
|
Hyperinflation
|
-
|
10
|
-
|
-
|
-
|
-
|
10
|
2022 reported
|
2,454
|
1,017
|
711
|
315
|
538
|
(238)
|
4,797
|
Organic movement %
|
7
|
64
|
16
|
79
|
70
|
(18)
|
26
|
|
|
|
|
|
|
|
|
Organic
operating margin % (3)
|
|
|
|
|
|
|
|
2022
|
40.0
|
32.3
|
24.3
|
20.3
|
35.2
|
n/a
|
31.0
|
2021
|
43.0
|
25.6
|
24.3
|
13.8
|
29.6
|
n/a
|
29.8
|
Margin movement (bps)
|
(295)
|
671
|
2
|
643
|
564
|
n/a
|
121
|
|
|
|
|
|
|
|
|
2019 to 2022 reported growth %
|
|
|
|
|
|
|
17
|
2019 to 2022 growth on a constant basis %
|
|
|
|
|
|
|
25
|
|
Volume
|
Sales
|
Net sales
|
Marketing
|
Operating
profit
|
|
equ. units million
|
£ million
|
£ million
|
£ million
|
£ million
|
Year ended 30 June 2021
|
|
|
|
|
|
Acquisitions
|
|
|
|
|
|
Aviation
Gin and Davos Brands
|
-
|
-
|
-
|
-
|
9
|
Chase
Distillery
|
-
|
-
|
-
|
-
|
2
|
Lone
River Ranch Water
|
-
|
-
|
-
|
-
|
-
|
Loyal
9 Cocktails
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
11
|
Disposals
|
|
|
|
|
|
South
African ready to drink
|
-
|
(8)
|
(4)
|
-
|
-
|
Meta
Abo Brewery
|
(0.4)
|
(22)
|
(16)
|
(2)
|
12
|
Picon
|
(0.7)
|
(21)
|
(20)
|
(1)
|
(12)
|
|
(1.1)
|
(51)
|
(40)
|
(3)
|
-
|
|
|
|
|
|
|
Acquisitions and
disposals
|
(1.1)
|
(51)
|
(40)
|
(3)
|
11
|
|
|
|
|
|
|
Year ended 30 June 2022
|
|
|
|
|
|
Acquisitions
|
|
|
|
|
|
Aviation
Gin and Davos Brands
|
-
|
6
|
5
|
(4)
|
(11)
|
Chase
Distillery
|
-
|
5
|
3
|
(1)
|
(2)
|
Lone
River Ranch Water
|
0.1
|
14
|
13
|
(13)
|
(13)
|
Loyal
9 Cocktails
|
-
|
14
|
11
|
(5)
|
(2)
|
Mezcal
Unión
|
0.1
|
6
|
5
|
(1)
|
1
|
21Seeds
|
-
|
3
|
3
|
(2)
|
(2)
|
|
0.2
|
48
|
40
|
(26)
|
(29)
|
Disposals
|
|
|
|
|
|
Meta
Abo Brewery
|
0.3
|
20
|
15
|
(2)
|
(10)
|
Picon
|
0.7
|
21
|
20
|
-
|
12
|
|
1.0
|
41
|
35
|
(2)
|
2
|
|
|
|
|
|
|
Acquisitions and disposals
|
1.2
|
89
|
75
|
(28)
|
(27)
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Profit attributable to equity shareholders of the parent
company
|
3,249
|
2,660
|
Exceptional operating and non-operating items
|
405
|
1
|
Exceptional tax charges
|
-
|
88
|
Tax in respect of exceptional operating and non-operating
items
|
(31)
|
(4)
|
Exceptional items attributable to non-controlling
interests
|
(103)
|
1
|
|
3,520
|
2,746
|
|
|
|
Weighted average number of shares
|
million
|
million
|
Shares in issue excluding own shares
|
2,318
|
2,337
|
Dilutive potential ordinary shares
|
7
|
8
|
|
2,325
|
2,345
|
|
|
|
|
pence
|
pence
|
Basic earnings per share before exceptional items
|
151.9
|
117.5
|
Diluted earnings per share before exceptional items
|
151.4
|
117.1
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Net cash inflow from operating activities
|
3,935
|
3,654
|
Disposal of property, plant and equipment and computer
software
|
17
|
13
|
Purchase of property, plant and equipment and computer
software
|
(1,097)
|
(626)
|
Movements in loans and other investments
|
(72)
|
(4)
|
Free cash flow
|
2,783
|
3,037
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Profit for the year
|
3,338
|
2,799
|
Taxation
|
1,049
|
907
|
Share of after tax results of associates and joint
ventures
|
(417)
|
(334)
|
Net finance charges
|
422
|
373
|
Non-operating items
|
17
|
(14)
|
Operating profit
|
4,409
|
3,731
|
Exceptional operating items
|
388
|
15
|
Fair value remeasurement
|
(60)
|
36
|
Depreciation,
amortisation and impairment(1)
|
489
|
447
|
Hyperinflation adjustment
|
(10)
|
-
|
Retranslation to budgeted exchange rates
|
27
|
375
|
|
5,243
|
4,604
|
|
|
|
Cash generated from operations
|
5,212
|
4,857
|
Net
exceptional cash paid/(received)(2)
|
15
|
(49)
|
Post
employment payments less amounts included in operating
profit(1)
|
89
|
35
|
Net
movement in maturing inventories(3)
|
360
|
174
|
Provision
movement
|
58
|
60
|
Dividends received from associates
|
(190)
|
(290)
|
Other
items(1)
|
(53)
|
(88)
|
Hyperinflation adjustment
|
(22)
|
-
|
Retranslation to budgeted exchange rates
|
42
|
387
|
|
5,511
|
5,086
|
|
|
|
Operating
cash conversion
|
105.1%
|
110.5%
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Operating profit
|
4,409
|
3,731
|
Exceptional operating items
|
388
|
15
|
Profit before exceptional operating items attributable to
non-controlling interests
|
(192)
|
(138)
|
Share of after tax results of associates and joint
ventures
|
417
|
334
|
Tax at
the tax rate before exceptional items of 22.5% (2021 - 22.2%)
|
(1,173)
|
(906)
|
|
3,849
|
3,036
|
|
|
|
Average net assets (excluding net post employment benefit
assets/liabilities)
|
8,428
|
8,146
|
Average non-controlling interests
|
(1,641)
|
(1,587)
|
Average net borrowings
|
12,859
|
12,672
|
Average integration and restructuring costs (net of
tax)
|
1,639
|
1,639
|
Goodwill at 1 July 2004
|
1,562
|
1,562
|
Average invested capital
|
22,847
|
22,432
|
|
|
|
Return on average invested capital
|
16.8%
|
13.5%
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Borrowings due within one year
|
1,522
|
1,862
|
Borrowings due after one year
|
14,498
|
12,865
|
Fair value of foreign currency derivatives and interest rate
hedging instruments
|
(73)
|
(232)
|
Lease liabilities
|
475
|
363
|
Less: Cash and cash equivalents
|
(2,285)
|
(2,749)
|
Net borrowings
|
14,137
|
12,109
|
Post employment benefit liabilities before tax
|
402
|
574
|
Adjusted net borrowings
|
14,539
|
12,683
|
|
|
|
Profit for the year
|
3,338
|
2,799
|
Taxation
|
1,049
|
907
|
Net finance charges
|
422
|
373
|
Depreciation, amortisation and impairment (excluding exceptional
intangible impairment)
|
492
|
447
|
Exceptional intangible impairment
|
336
|
-
|
EBITDA
|
5,637
|
4,526
|
Exceptional operating items (excluding impairment)
|
49
|
15
|
Non-operating items
|
17
|
(14)
|
Adjusted EBITDA
|
5,703
|
4,527
|
Adjusted net borrowings to adjusted EBITDA
|
2.5
|
2.8
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Tax before exceptional items (a)
|
1,080
|
823
|
Tax in respect of exceptional items
|
(31)
|
(4)
|
Exceptional tax charge
|
-
|
88
|
Taxation on profit (b)
|
1,049
|
907
|
|
|
|
Profit before taxation and exceptional items (c)
|
4,792
|
3,707
|
Non-operating items
|
(17)
|
14
|
Exceptional operating items
|
(388)
|
(15)
|
Profit before taxation (d)
|
4,387
|
3,706
|
|
|
|
Tax rate before exceptional items (a/c)
|
22.5%
|
22.2%
|
Tax rate after exceptional items (b/d)
|
23.9%
|
24.5%
|
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press@diageo.com
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Diageo plc
|
|
(Registrant)
|
|
|
Date:
28 July 2022
|
|
|
|
|
By:___/s/
James Edmunds
|
|
|
|
James Edmunds
|
|
Deputy Company Secretary
|