Diageo Plc · LSE:DGE
Diageo — H1 FY2020 Earnings Presentation
7 slides from Diageo's earnings presentation, Feb 4, 2020
Slide 1: Net sales and operating profit growth
(i) Exchange rate movements reflect the adjustment to recalculate the reported results as if they had been generated at the prior period weighted average exchange rates. Reported net sales grew 4.2% , driven by organic growth and favourable exchange which was partially offset by acquisitions and dis
Slide 2: Operating profit and operating margin
Reported operating profit was up 0.5 % driven by organic growth, partially offset by unfavourable exchange, the impact of acquisitions and disposals and exceptional items. Organic operating profit grew ahead of net sales at 4.6% . Table of Contents Operating margin (%) Reported operating margin decl
Slide 3: Operating margin and basic earnings per share
Reported operating margin declined 126bps driven by exceptional items, unfavourable exchange and the impact from acquisitions and disposals, partially offset by organic operating margin improvement. Organic operating margin improved 13 bps driven by productivity benefits from cost efficiencies and s
Slide 4: Earnings per share and cash flow
(i) Includes finance charges net of tax. (ii) Excludes finance charges related to acquisitions, disposals and share buyback. (iii) Excludes tax related to acquisitions, disposals and share buybacks. Basic eps decreased 1.7 pence principally due to a prior year exceptional gain. Eps before exceptiona
Slide 5: Free cash flow decrease versus prior period
Net cash from operating activities was £1,288 million, a decrease of £316 million compared to prior period as growth in operating profit was more than offset by higher tax payments and higher interest charges. Higher tax payments were driven by changes in the timing of instalments and one-off items,
Slide 6: Free cash flow and cash flow notes
( i) Net cash from operating activities excludes net capex and movements in loans and other investments ( F20 H1 - £(322) million; F19 H1 - £(258) million ). (ii) Net cash from operating activities and free cash flow for the six months ended 31 December 2019 has benefited by £32 million as a result
Slide 7: Additional financial information: summary income statement
Markets: Markets: Markets: (i) ROIC calculation excludes exceptional items and includes an adverse impact of 20bps as a result of the adoption of IFRS 16 on 1 July 2019. ROIC decreased 33bps against the prior comparable period as organic operating profit growth was offset by increased tax, the impac