Diageo PLC — Earnings Release 2014

Sep 9, 2014

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 1300R

Diageo PLC

09 September 2014

9 September 2014

Diageo issues revised segmental information for prior reporting periods

As announced on 30 July 2014, Diageo has made changes to management responsibilities. An assessment was subsequently made to determine how the business will be presented in its management reporting to the executive committee and this has led to a change in the reporting of the group's external geographic segments. For the year ending 30 June 2015 the following geographical segments will be reported:

·      North America

·      Europe

·      Africa

·      Latin America and Caribbean

·      Asia Pacific

·      Corporate

As a consequence of this change the figures for the geographical segments for prior periods have been restated. 

Revised segmental information for the years ended 30 June 2014 and 30 June 2013 and the six month period ended 31 December 2013 is provided below.

Organic growth percentages by geographic segment for the year ended 30 June 2014 are also provided.

Volume

	Year ended 30 June 2014				Year ended 30 June 2013
	As reported units million	Reclass units million	Restated units million		As reported units million	Reclass units million	Restated units million
North America	49.3	-	49.3		53.6	-	53.6
Europe	-	44.6	44.6		-	45.4	45.4
Western Europe	33.0	(33.0)	-		33.6	(33.6)	-
Africa	-	24.4	24.4		-	26.1	26.1
Africa, Eastern Europe and Turkey	36.0	(36.0)	-		37.9	(37.9)	-
Latin America and Caribbean	23.0	-	23.0		23.3	-	23.3
Asia Pacific	14.8	-	14.8		15.8	-	15.8
	156.1	-	156.1		164.2	-	164.2

	Six months ended 31 Dec 2013
	As reported units million	Reclass units million	Restated units million
North America	26.5	-	26.5
Europe	-	24.3	24.3
Western Europe	17.7	(17.7)	-
Africa	-	12.8	12.8
Africa, Eastern Europe and Turkey	19.4	(19.4)	-
Latin America and Caribbean	12.5	-	12.5
Asia Pacific	8.2	-	8.2
	84.3	-	84.3

Sales

	Year ended 30 June 2014				Year ended 30 June 2013
	As reported £ million	Reclass £ million	Restated £ million		As reported £ million	Reclass £ million	Restated £ million
North America	3,915	-	3,915		4,262	-	4,262
Europe	-	4,935	4,935		-	5,074	5,074
Western Europe	3,644	(3,644)	-		3,669	(3,669)	-
Africa	-	1,846	1,846		-	2,014	2,014
Africa, Eastern Europe and Turkey	3,137	(3,137)	-		3,419	(3,419)	-
Latin America and Caribbean	1,404	-	1,404		1,741	-	1,741
Asia Pacific	1,801	-	1,801		2,109	-	2,109
Corporate	79	-	79		76	-	76
	13,980	-	13,980		15,276	-	15,276

	Six months ended 31 Dec 2013
	As reported £ million	Reclass £ million	Restated £ million
North America	2,149	-	2,149
Europe	-	2,707	2,707
Western Europe	1,970	(1,970)	-
Africa	-	1,002	1,002
Africa, Eastern Europe and Turkey	1,739	(1,739)	-
Latin America and Caribbean	1,102	-	1,102
Asia Pacific	1,012	-	1,012
Corporate	42	-	42
	8,014	-	8,014

Net sales

	Year ended 30 June 2014				Year ended 30 June 2013
	As reported £ million	Reclass £ million	Restated £  million		As reported £ million	Reclass £ million	Restated £ million
North America	3,444	-	3,444		3,723	-	3,723
Europe	-	2,814	2,814		-	2,915	2,915
Western Europe	2,169	(2,169)	-		2,203	(2,203)	-
Africa	-	1,430	1,430		-	1,564	1,564
Africa, Eastern Europe and Turkey	2,075	(2,075)	-		2,276	(2,276)	-
Latin America and Caribbean	1,144	-	1,144		1,453	-	1,453
Asia Pacific	1,347	-	1,347		1,572	-	1,572
Corporate	79	-	79		76	-	76
	10,258	-	10,258		11,303	-	11,303

	Six months ended 31 Dec 2013
	As reported £ million	Reclass £ million	Restated £ million
North America	1,904	-	1,904
Europe	-	1,560	1,560
Western Europe	1,179	(1,179)	-
Africa	-	774	774
Africa, Eastern Europe and Turkey	1,155	(1,155)	-
Latin America and Caribbean	900	-	900
Asia Pacific	752	-	752
Corporate	42	-	42
	5,932	-	5,932

Marketing spend

	Year ended 30 June 2014				Year ended 30 June 2013
	As reported £ million	Reclass £ million	Restated £ million		As reported £ million	Reclass £ million	Restated £ million
North America	540	-	540		581	-	581
Europe	-	413	413		-	431	431
Western Europe	323	(323)	-		328	(328)	-
Africa	-	152	152		-	162	162
Africa, Eastern Europe and Turkey	242	(242)	-		265	(265)	-
Latin America and Caribbean	203	-	203		233	-	233
Asia Pacific	305	-	305		356	-	356
Corporate	7	-	7		6	-	6
	1,620	-	1,620		1,769	-	1,769

	Six months ended 31 Dec 2013
	As reported £ million	Reclass £ million	Restated £ million
North America	293	-	293
Europe	-	231	231
Western Europe	177	(177)	-
Africa	-	81	81
Africa, Eastern Europe and Turkey	135	(135)	-
Latin America and Caribbean	123	-	123
Asia Pacific	170	-	170
Corporate	5	-	5
	903	-	903

Operating profit before exceptional items

	Year ended 30 June 2014				Year ended 30 June 2013
	As reported £ million	Reclass £ million	Restated £ million		As reported £ million	Reclass £ million	Restated £ million
North America	1,460	-	1,460		1,478	-	1,478
Europe	-	853	853		-	903	903
Western Europe	639	(639)	-		650	(650)	-
Africa	-	340	340		-	400	400
Africa, Eastern Europe and Turkey	554	(554)	-		653	(653)	-
Latin America and Caribbean	328	-	328		468	-	468
Asia Pacific	283	-	283		381	-	381
Corporate	(130)	-	(130)		(151)	-	(151)
	3,134	-	3,134		3,479	-	3,479

	Six months ended 31 Dec 2013
	As reported £ million	Reclass £ million	Restated £ million
North America	851	-	851
Europe	-	509	509
Western Europe	370	(370)	-
Africa	-	188	188
Africa, Eastern Europe and Turkey	327	(327)	-
Latin America and Caribbean	386	-	386
Asia Pacific	193	-	193
Corporate	(67)	-	(67)
	2,060	-	2,060

Organic growth for the year ended 30 June 2014

		Volume			Sales			Net sales
Increase/(decrease)		As reported	Restated		As reported	Restated		As reported	Restated
		%	%		%	%		%	%
North America		(1)	(1)		3	3		3	3
Europe		-	(1)		-	2		-	1
Western Europe		Flat	-		1	-		Flat	-
Africa		-	(6)		-	Flat		-	Flat
Africa, Eastern Europe and Turkey		(5)	-		3	-		1	-
Latin America and Caribbean		(1)	(1)		5	5		2	2
Asia Pacific		(5)	(5)		(7)	(7)		(7)	(7)
Corporate		n/a	n/a		4	4		4	4
Total		(2)	(2)		1	1		Flat	Flat

		Marketing spend			Operating profit*
Increase/(decrease)		As reported	Restated		As reported	Restated
		%	%		%	%
North America		2	2		8	8
Europe		-	(1)		-	1
Western Europe		Flat	-		Flat	-
Africa		-	3		-	(2)
Africa, Eastern Europe and Turkey		1	-		Flat	-
Latin America and Caribbean		1	1		3	3
Asia Pacific		(7)	(7)		(13)	(13)
Corporate		17	17		13	13
Total		(1)	(1)		3	3

* Operating profit before exceptional items

The reported figures are those reported in the press release dated 31 July 2014.

Net sales are after deducting excise duties.  See the company's 2014 UK annual report and annual report on Form 20-F for the year ended 30 June 2014 filed with the US Securities and Exchange Commission (SEC) for an explanation of organic movement calculations and further definitions, disclosures and information.

Contacts

Investor enquiries to:                              Catherine James                        +44 (0) 20 8978 2272

Pier Falcione                             +44 (0) 20 8978 4838

Angela Ryker Gallagher              +44 (0) 20 8978 4911

Colette Wright                           +44 (0) 20 8978 1380

investor.relations@diageo.com

Media enquiries to:                                 James Crampton                        +44 (0) 20 8978 4613

Victoria Ward                             +44 (0) 20 8978 4353

press.office@diageo.com 

Editor notes

Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits, beer and wine categories.  These brands include Johnnie Walker, Crown Royal, JεB, Buchanan's, Windsor and Bushmills whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Diageo is a global company, and our products are sold in more than 180 countries around the world.  The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO).  For more information about Diageo, our people, our brands, and performance, visit us at www.diageo.com.  Visit Diageo's global responsible drinking resource, www.DRINKiQ.com, for information, initiatives, and ways to share best practice.

Celebrating life, every day, everywhere.

Important information

This announcement is not intended to and does not constitute or form part of any offer to sell or subscribe for or any invitation to purchase or subscribe for any securities in any jurisdiction. 

The release, publication or distribution of this announcement in certain jurisdictions may be restrict by law and therefore any persons who are subject to the laws of any jurisdiction other than the United Kingdom should observe any applicable requirements.  This announcement has been prepared for the purpose of complying with the laws of the United Kingdom and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws of jurisdictions outside the United Kingdom.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCEAKNPELXLEFF