Diageo PLCs interim report for the first half of the fiscal year ending December 31, 2024, shows a challenging environment with a decline in reported net sales of $10.9 billion, attributed to unfavorable foreign exchange rates. However, organic net sales grew by $101 million or 1.0%, driven by positive price/mix. The companys operating profit and operating profit margin declined due to unfavorable foreign exchange rates and increased overhead investments. Diageo held or grew its market share in 65% of its total net sales value in measured markets. The companys EPS pre-exceptionals declined by 9.6%, while net cash flow from operating activities and free cash flow increased. Due to macroeconomic and geopolitical uncertainty, medium-term guidance has been removed, and the company will provide more regular near-term guidance instead. An interim dividend of 40.5 cents per share was declared, and the company maintains a positive outlook despite the challenges.
| Year | Net Sales | Operating Profit | EPS (pre-exceptionals) | Net Cash from Operating Activities | Free Cash Flow | Interim Dividend per Share | Leverage Ratio |
|---|---|---|---|---|---|---|---|
| 2025 | $10,901 million | $3,155 million | 87.1 cents | $2,325 million | $1,696 million | 40.50 cents | 3.1x (net debt to EBITDA) |
| 2024 | $10,962 million | $3,317 million | 98.6 cents | $2,146 million | $1,571 million | 40.50 cents | N/A |