A final dividend of 46.82 pence per share was recommended by Diageo Plc on 27 July 2022 for approval by shareholders at the Annual General Meeting scheduled to be held on 6 October 2022 bringing the full year dividend to 76.18 pence per share for the year ended 30 June 2022. The ex-dividend date both for holders of ordinary shares and for US ADR holders is 25 August 2022. The final dividend, once approved by shareholders, will be paid to holders of ordinary shares on 20 October 2022 and payment to US ADR holders will be made on 25 October 2022.
Other Financial Highlights:
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.
- 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% 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 of 2.5x at 30 June 2022
Continued progress in delivering Society 2030 goals
- Diageo Plc 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.
- 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.