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Annual Results

Diageo sales and operating profits rise

27 July 2017 07:21

Diageo reports a consistent strong performance for the year ended 30 June with reported net sales of £12.1 billion and operating profit of £3.6bn - up 15% and 25%, respectively.

The group said this reflected favourable exchange and accelerated organic growth.

Diageo said All regions contributed to broad based organic net sales growth, up 4.3%, and organic volume grew 1.1%.

Organic operating profit grew 5.6%, ahead of top line growth, driven by good progress on productivity partially offset by implementation costs and one-off items.

Free cash flow continued to be strong at £2.7 billion, increasing by £566 million compared to the prior year, with net cash from operating activities up £584 million to £3.1 billion.

Basic eps of 106.0 pence was up 18%. Pre-exceptional eps was 108.5 pence, up 21%, as higher organic operating profit and associate income along with favourable exchange more than offset the impact of disposals and a higher tax rate.

Diageo said it continued to expect mid-single digit organic net sales growth and was raising its margin improvement objective from 100bps to 175bps over the three years ending 30 June 2019.

On 26 July 2017 the Board approved a share buy-back programme to return up to £1.5 billion to shareholders during F18.

The board has recommended a final dividend increase of 5% bringing the full year dividend to 62.2 pence per share

Story provided by StockMarketWire.com

Related Company: DGE

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