Preliminary Results
Results show Diageo is a strong business getting stronger
· Net sales growth of 5%, driven by 4 percentage points of positive price/mix
· Operating profit growth of 8%, driven by 0.8 percentage points of margin expansion
· Marketing investment up 5%, to 15.7% of net sales, focused on the strategic brands
· Strong performance in North America with net sales up 5% and operating profit up 9%
· Emerging markets' net sales are 42% of Diageo's business, following 11% net sales growth and acquisitions which added £233 million
· Emerging markets operating profit up 18%, as increased scale led to operating margin expansion
· Acquisition of the Ypióca brand in Brazil in August 2012
· Free cash flow was £1.5 billion, after making a £400 million contribution to the UK pension scheme
· Growth of 11% in eps pre-exceptional items, to 104.4 pence per share
· Board recommending a 9% increase in the final dividend
· Increased stake in Shuijingfang and acquired the major interest in USL since the year end