Despite a “volatile operating environment”, the drinks business reported net sales of $20.3bn, which were down 1.4% because of “an unfavourable foreign exchange impact and organic net sales decline” but were partially offset by “hyperinflation adjustments”.
Reported operating profit grew 8.2% and organic net sales declined by 0.6% ($129m).
The business, whose GB business owns Johnnie Walker, Captain Morgan and Casamigos, grew or held total market share in more than 75% of total net sales in measured markets, including in the US.
Strong performance in Guinness
Net cash flow from operating activities increased by $0.5bn to $4.1bn while free cash flow increased by $0.4bn to $2.6bn.
Its European arm was the only world region to see an improvement in reported growth net sales from the previous year as it leapt 12% worth $501m. Meanwhile, organic growth in net sales for the Europe rose by 3% ($124m).
Diageo reported: “Great Britain net sales grew 5%, primarily driven by strong performance in Guinness, which gained share in both the on-trade and off-trade.
“Share gains were driven by continued recruitment through strong brand building and new occasions, supported by Guinness 0.0 and Nitrosurge innovations.”
Well positioned for growth
Diageo chief executive Debra Crew said: “While [the 2024 financial year] was a challenging year for both our industry and Diageo – with continued macroeconomic and geopolitical volatility – we focused on taking the actions needed to ensure Diageo is well positioned for growth as the consumer environment improves.
“[The 2024 financial year] was impacted by materially weaker performance in Latin America and the Caribbean (LAC). Excluding LAC, organic net sales grew 1.8%, driven by resilient growth in our Africa, Asia Pacific and Europe regions. This offset the decline in North America, which was attributable to a cautious consumer environment and the impact of lapping inventory replenishment in the prior year.
“Diageo is a resilient business, benefiting from its global reach and unrivalled brand portfolio. With iconic brands that have been enjoyed for decades, Diageo takes a long-term view, and will continue to invest in our brands, people and diversified footprint to deliver sustainable long-term growth and generate shareholder value.”
