Diageo Plc · LSE:DGE
Diageo — H1 2017 Earnings Presentation
8 slides from Diageo's earnings presentation, Feb 2, 2017
Slide 1: Net sales and operating profit movement
853 107 163 6 421 24 5 606 (260) (72) Organic movement F16 H1 Asia Pacific net Exchange(ii) Disposals Acquisitions Volume Price/mix F17 H1 sales adjustment(i) Adjustment for the impact of an accounting change made by USL to account for sales by third party manufacturers to a net sales basis in the p
Slide 2: Operating profit and operating margin movement
303 87 2 065 (33) (9) 1041 613 F16 H1 Exceptional Exchange Disposals Acquisitions Organic movement F17 H1 operating items Reported operating profit was up 28% as a result of favourable exchange, organic growth and comparison against an exceptional charge in the prior period. Organic operating profit
Slide 3: Operating margin and basic earnings per share
Organic movement 90bps 39bps 53bps 32.16% 37bps 64bps 130bps 185bps 28.78% F16 H1 Exceptional Exchange Asia Pacific net Acquisitions Gross margin Marketing Other operating F17 H1 operating items sales and disposals expenses adjustment(i) Adjustment for the impact of an accounting change made by USL
Slide 4: Earnings per share and net cash from operating activities
1.39 12.05 3.50 0,09 60.3 (0.22) 56.1 (1.68) (4.43) (4.32) (2.19) F16 H1 Exceptional Discontinued Exchange on Acquisitions Organic Associates Net finance Tax Non-controlling F17 H1 items(i) operations operating profit and disposals operating profit and joint charges interests after tax growth (ii) v
Slide 5: Free cash flow movement
108 29 303 1 267 (158) (52) 1 037 F16 H1 Exchange Operating profit Working capital Interest and tax Other F17 H1 Free cash flow was £1,084 million, an increase of £245 million
Slide 6: Free cash flow drivers
29 108 303 1084 (158) (49) 839 12 F16 H1 Capex Exchange(ii) Operating Working capital Interest and tax Other(iv) F17 H1 profit(iii) Net cash from operating activities excludes net capex, loans and other investments ((£183) million in 2016 – (£198) million in 2015) (ii) Exchange on operating profit b
Slide 7: ROIC and additional financial information: summary income statement
84bps 28bps 18bps 15,71% 150bps 6bps (100)bps 13,85% F16 H1 Exchange Acquisitions and Organic Associates and Tax Other F17 H1 disposals operating profit joint ventures growth ROIC calculation excludes exceptional items. ROIC before exceptional items increased 186bps mainly driven by favourable excha
Slide 8: Net sales by category and region
Net sales by category Volume by category Marketing spend by category L6,421m 129.4EUm L908m Scotch Vodka North American whisk(e)y Rum Liqueurs Gin Tequila Ready to drink Beer IMFL whisky Other 34% of total Diago Spirits Beer Ready to Drink Other Net sales by category and region North America Europe,