REG - Diageo PLC - Methodology change for organic non-GAAP measures
3 December 2019
Change in method for calculating organic non-GAAP measures
Diageo announced, at its Capital Markets Day on 22 May 2019, that it would change its method of calculating organic growth for periods beginning with the six months ending 31 December 2019. Organic growth is a non-GAAP financial measure. See 'Explanatory Notes' below for an explanation and reconciliation of non-GAAP measures.
Going forward, Diageo will calculate the exchange adjustment included in the organic movement calculation by translating the current period results at the prior period weighted average exchange rates. Previously, Diageo had calculated the exchange adjustment included in the organic calculation by translating the prior period results at the current period exchange rates.
This change in methodology will significantly simplify Diageo's internal reporting processes by more closely aligning its calculation of organic movements with its internal management reporting. Diageo also believes this methodology will allow investors to better compare Diageo's organic movements with its peer group listed on page 92 of the Annual Report 2019.
Exchange impacts in respect of the external hedging of the intergroup sales of products and the intergroup recharging of third party services will continue to be allocated to the geographical segment to which they relate. Any residual exchange impacts will continue to be reported in Corporate. Results from markets that have hyperinflationary economies are translated at respective years' actual rates. As a result, no exchange difference is reported. Under the revised methodology, the adjustments included in respect of Acquisitions and Disposals in the organic reconciliation, calculated at the prior period's weighted average rate, have not changed materially.
Organic growth for sales, net sales, marketing and operating profit for the years ended 30 June 2019 and 2018 and for the six month period ended 31 December 2018 are set out in the tables below under both the prior methodology and the new methodology with no significant difference for all periods, geographical segments and key categories:
Explanatory notes
Definitions and reconciliation of non-GAAP measures to GAAP measures
Diageo's strategic planning process is based on certain non-GAAP measures, including organic movements. These non-GAAP measures are chosen for planning and reporting, and some of them are used for incentive purposes. The group's management believes these measures provide valuable additional information for users of the financial statements in understanding the group's performance. These non-GAAP measures should be viewed as complementary to, and not replacements for, the comparable GAAP measures and reported movements therein.
Organic movements
Organic information is presented using pounds sterling amounts on a constant currency basis excluding the impact of exceptional items and acquisitions and disposals. Organic measures enable users to focus on the performance of the business which is common to both years and which represents those measures that local managers are most directly able to influence.
Calculation of organic movements under new methodology
The organic movement percentage is the amount in the row titled 'Organic movement' in the tables below, expressed as a percentage of the absolute amount in the associated relevant row titled 'adjusted'. Organic operating margin is calculated by dividing operating profit before exceptional items by net sales after excluding the impact of exchange rate movements and acquisitions and disposals.
(a) Exchange rates
'Exchange' in the organic movement calculation reflects the adjustment to recalculate the reported results as if they had been generated at the prior period weighted average exchange rates.
Exchange impacts in respect of the external hedging of inter group sales by the markets in a currency other than their functional currency and the inter group recharging of services are also translated at prior period weighted average exchange rates and are allocated to the geographical segment to which they relate. Residual exchange impacts are reported as part of the Corporate segment.
(b) Acquisitions and disposals
For acquisitions in the current period, the post acquisition results are excluded from the organic movement calculations. For acquisitions in the prior period, post acquisition results are included in full in the prior period but are included in the organic movement calculation from the anniversary of the acquisition date in the current period. The acquisition row also eliminates the impact of transaction costs that have been charged to operating profit in the current or prior period in respect of acquisitions that, in management's judgement, are expected to be completed.
Where a business, brand, brand distribution right or agency agreement was disposed of, or terminated, in the period up to the date of the external results announcement, the group, in the organic movement calculations, excludes the results for that business from the current and prior period. In the calculation of operating profit, the overheads included in disposals are only those directly attributable to the businesses disposed of, and do not result from subjective judgements of management.
(c) Exceptional items
Exceptional items are those that in management's judgement need to be disclosed by virtue of their size and/or nature. Such items are included within the income statement caption to which they relate, and are separately disclosed in the notes to the consolidated financial statements, and are excluded from the organic movement calculations.
Exceptional operating items are those that are considered to be material and/or unusual or non-recurring in nature and are part of the operating activities of the group such as impairments of fixed assets, indirect tax settlements, property disposals and changes in post-employment plans.
Gains and losses on the sale of businesses, brands or distribution rights, step up gains and losses that arise when an investment becomes an associate or an associate becomes a subsidiary and other material, unusual non-recurring items, that are not in respect of the production, marketing and distribution of premium drinks, are disclosed as non-operating exceptional items below operating profit in the consolidated income statement.
Exceptional current and deferred tax items, comprising material unusual non-recurring items, impact taxation. Examples include, direct tax provisions and settlements in respect of prior years and the remeasurement of deferred tax assets and liabilities following tax rate changes.
It is believed that separate disclosure of exceptional items and the classification between operating and non-operating items further helps investors to understand the performance of the group.
Organic movement calculations for the year ended 30 June 2019 under both the new and old methodologies were as follows:
Year ended 30 June 2019
As calculated under new methodology
As calculated under old methodology
North
America
£ million
Europe and Turkey
£ million
Africa
£ million
Latin America and Caribbean
£ million
Asia Pacific
£ million
Corporate
£ million
Total
£ million
North
America
£ million
Europe and Turkey
£ million
Africa
£ million
Latin America and Caribbean
£ million
Asia Pacific
£ million
Corporate
£ million
Total
£ million
Sales
Sales
2018 reported
4,671
5,232
2,083
1,352
5,042
52
18,432
2018 reported
4,671
5,232
2,083
1,352
5,042
52
18,432
Exchange
(34)
(1)
(4)
5
(17)
(1)
(52)
Exchange
200
(291)
12
(35)
(120)
-
(234)
Disposals
(175)
(7)
(4)
(1)
(10)
-
(197)
Disposals
(185)
(7)
(4)
(1)
(10)
-
(207)
2018 adjusted
4,462
5,224
2,075
1,356
5,015
51
18,183
2018 adjusted
4,686
4,934
2,091
1,316
4,912
52
17,991
Organic movement
239
223
145
127
461
3
1,198
Organic movement
249
195
142
127
443
1
1,157
Acquisitions and disposals
133
2
2
1
1
-
139
Acquisitions and disposals
139
3
2
1
1
-
146
Exchange
240
(317)
13
(40)
(121)
(1)
(226)
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2019 reported
5,074
5,132
2,235
1,444
5,356
53
19,294
2019 reported
5,074
5,132
2,235
1,444
5,356
53
19,294
Organic movement %
5
4
7
9
9
6
7
Organic movement %
5
4
7
10
9
2
6
Net sales
Net sales
2018 reported
4,116
2,932
1,491
1,069
2,503
52
12,163
2018 reported
4,116
2,932
1,491
1,069
2,503
52
12,163
Exchange
(28)
(4)
(4)
3
(8)
(1)
(42)
Exchange
176
(95)
8
(29)
(36)
-
24
Disposals
(136)
(3)
(3)
(1)
(6)
-
(149)
Disposals
(143)
(3)
(3)
(1)
(6)
-
(156)
2018 adjusted
3,952
2,925
1,484
1,071
2,489
51
11,972
2018 adjusted
4,149
2,834
1,496
1,039
2,461
52
12,031
Organic movement
206
113
104
89
231
3
746
Organic movement
216
104
100
90
226
1
737
Acquisitions and disposals
93
-
1
1
1
-
96
Acquisitions and disposals
95
1
1
1
1
-
99
Exchange
209
(99)
8
(31)
(33)
(1)
53
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2019 reported
4,460
2,939
1,597
1,130
2,688
53
12,867
2019 reported
4,460
2,939
1,597
1,130
2,688
53
12,867
Organic movement %
5
4
7
8
9
6
6
Organic movement %
5
4
7
9
9
2
6
Marketing
Marketing
2018 reported
662
474
158
196
388
4
1,882
2018 reported
662
474
158
196
388
4
1,882
Exchange
(5)
(4)
1
-
(2)
-
(10)
Exchange
24
(10)
1
(7)
(3)
-
5
Reclassification
-
-
10
-
-
-
10
Reclassification
-
-
10
-
-
-
10
Disposals
(1)
-
-
-
-
-
(1)
Disposals
(1)
-
-
-
-
-
(1)
2018 adjusted
656
470
169
196
386
4
1,881
2018 adjusted
685
464
169
189
385
4
1,896
Organic movement
71
27
4
11
27
(1)
139
Organic movement
75
26
5
12
27
(1)
144
Acquisitions and disposals
2
-
-
-
-
-
2
Acquisitions and disposals
2
-
-
-
-
-
2
Exchange
33
(7)
1
(6)
(1)
-
20
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2019 reported
762
490
174
201
412
3
2,042
2019 reported
762
490
174
201
412
3
2,042
Organic movement %
11
6
2
6
7
(25)
7
Organic movement %
11
6
3
6
7
(25)
8
Operating profit
Operating profit
2018 reported
1,882
1,028
191
308
568
(158)
3,819
2018 reported
1,882
1,028
191
308
568
(158)
3,819
Exchange
(23)
(3)
6
-
(3)
6
(17)
Exchange
74
(35)
(6)
(2)
(6)
-
25
Acquisitions and disposals
(85)
(2)
(2)
-
(2)
-
(91)
Acquisitions and disposals
(90)
(2)
(2)
-
(2)
-
(96)
2018 adjusted
1,774
1,023
195
308
563
(152)
3,711
2018 adjusted
1,866
991
183
306
560
(158)
3,748
Organic movement
62
29
77
67
148
(44)
339
Organic movement
52
22
91
59
143
(31)
336
Acquisitions and disposals
30
(1)
-
-
-
(1)
28
Acquisitions and disposals
30
1
1
-
-
-
32
Exchange
82
(37)
3
(10)
(8)
8
38
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2019 reported
1,948
1,014
275
365
703
(189)
4,116
2019 reported
1,948
1,014
275
365
703
(189)
4,116
Organic movement %
3
3
39
22
26
(29)
9
Organic movement %
3
2
50
19
26
(20)
9
Organic operating margin
Organic operating margin
2019
44.2%
34.6%
17.1%
32.3%
26.1%
n/a
31.8%
2019
43.9%
34.5%
17.2%
32.3%
26.2%
n/a
32.0%
2018
44.9%
35.0%
13.1%
28.8%
22.6%
n/a
31.0%
2018
45.0%
35.0%
12.2%
29.5%
22.8%
n/a
31.2%
Margin improvement/ (decline) (bps)
(73)
(35)
399
357
352
n/a
85
Margin improvement/ (decline) (bps)
(103)
(49)
494
288
341
n/a
83
Key categories - as calculated under new methodology
Key categories - as calculated under old methodology
Organic volume
movement
%
Organic net sales
movement
%
Reported net sales movement
%
Organic volume
movement
%
Organic net sales
movement
%
Reported net sales movement
%
Spirits
3
7
6
Spirits
3
7
6
Scotch
2
6
6
Scotch
2
6
6
Vodka
2
2
4
Vodka
2
2
4
US whiskey
2
4
9
US whiskey
2
4
9
Canadian whisky
6
6
8
Canadian whisky
6
6
8
Rum
(3)
(2)
(3)
Rum
(3)
(2)
(3)
Indian-Made Foreign Liquor (IMFL) whisky
6
8
3
Indian-Made Foreign Liquor (IMFL) whisky
6
8
3
Liqueurs
1
3
4
Liqueurs
1
4
4
Gin
17
23
23
Gin
17
22
23
Tequila
19
29
37
Tequila
19
29
37
Beer
1
3
4
Beer
1
3
4
Ready to drink
7
12
12
Ready to drink
7
12
12
Organic movement calculations for the six months ended 31 December 2018 under the new and old methodologies were as follows:
Six months ended 31 December 2018
As calculated under new methodology
As calculated under old methodology
North
America
£ million
Europe and Turkey
£ million
Africa
£ million
Latin America and Caribbean
£ million
Asia Pacific
£ million
Corporate
£ million
Total
£ million
North
America
£ million
Europe and Turkey
£ million
Africa
£ million
Latin America and Caribbean
£ million
Asia Pacific
£ million
Corporate
£ million
Total
£ million
Sales
Sales
2017 reported
2,467
2,887
1,088
840
2,625
27
9,934
2017 reported
2,467
2,887
1,088
840
2,625
27
9,934
Exchange
(70)
(45)
(10)
(14)
(61)
(1)
(201)
Exchange
52
(193)
(1)
(47)
(125)
-
(314)
Reclassification
1
12
-
-
(13)
-
-
Reclassification
1
12
-
-
(13)
-
-
Disposals
(92)
(4)
(2)
-
(9)
-
(107)
Disposals
(97)
(4)
(3)
-
(9)
-
(113)
2017 adjusted
2,306
2,850
1,076
826
2,542
26
9,626
2017 adjusted
2,423
2,702
1,084
793
2,478
27
9,507
Organic movement
143
193
74
59
292
2
763
Organic movement
151
174
74
70
286
1
756
Acquisitions and disposals
88
3
2
1
1
-
95
Acquisitions and disposals
93
3
2
1
1
-
100
Exchange
130
(167)
8
(22)
(70)
-
(121)
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2018 reported
2,667
2,879
1,160
864
2,765
28
10,363
2018 reported
2,667
2,879
1,160
864
2,765
28
10,363
Organic movement %
6
7
7
7
11
8
8
Organic movement %
6
6
7
9
12
4
8
Net sales
Net sales
2017 reported
2,183
1,599
774
649
1,298
27
6,530
2017 reported
2,183
1,599
774
649
1,298
27
6,530
Exchange
(63)
(17)
(9)
(11)
(22)
(1)
(123)
Exchange
44
(60)
(1)
(35)
(39)
-
(91)
Reclassification
1
12
-
-
(13)
-
-
Reclassification
1
12
-
-
(13)
-
-
Disposals
(72)
(2)
(2)
-
(5)
-
(81)
Disposals
(75)
(2)
(2)
-
(5)
-
(84)
2017 adjusted
2,049
1,592
763
638
1,258
26
6,326
2017 adjusted
2,153
1,549
771
614
1,241
27
6,355
Organic movement
125
86
50
49
156
2
468
Organic movement
130
83
49
57
156
1
476
Acquisitions and disposals
69
1
1
1
1
-
73
Acquisitions and disposals
73
1
1
1
1
-
77
Exchange
113
(46)
7
(16)
(17)
-
41
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2018 reported
2,356
1,633
821
672
1,398
28
6,908
2018 reported
2,356
1,633
821
672
1,398
28
6,908
Organic movement %
6
5
7
8
12
8
7
Organic movement %
6
5
6
9
13
4
7
Marketing
Marketing
2017 reported
338
246
83
109
188
4
968
2017 reported
338
246
83
109
188
4
968
Exchange
(4)
-
4
(2)
(3)
(2)
(7)
Exchange
10
(7)
3
(6)
(4)
-
(4)
Reclassification
(1)
-
-
1
-
-
-
Reclassification
(1)
-
-
1
-
-
-
Disposals
(1)
-
-
-
-
-
(1)
Disposals
(1)
-
-
-
-
-
(1)
2017 adjusted
332
246
87
108
185
2
960
2017 adjusted
346
239
86
104
184
4
963
Organic movement
30
18
4
7
25
(1)
83
Organic movement
36
21
5
6
24
(2)
90
Acquisitions
2
-
-
-
-
-
2
Acquisitions
1
-
-
-
-
-
1
Exchange
19
(4)
-
(5)
(2)
1
9
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2018 reported
383
260
91
110
208
2
1,054
2018 reported
383
260
91
110
208
2
1,054
Organic movement %
9
7
5
6
14
(50)
9
Organic movement %
10
9
6
6
13
(50)
9
Operating profit
Operating profit
2017 reported
1,027
599
120
218
316
(90)
2,190
2017 reported
1,027
599
120
218
316
(90)
2,190
Exchange
(22)
(9)
1
(3)
(7)
11
(29)
Exchange
39
(25)
(2)
(7)
(3)
(2)
-
Reclassification
1
9
-
(1)
(9)
-
-
Reclassification
1
9
-
(1)
(9)
-
-
Acquisitions and disposals
(43)
(1)
(1)
-
(1)
-
(46)
Acquisitions and disposals
(46)
(1)
(1)
-
(1)
-
(49)
2017 adjusted
963
598
120
214
299
(79)
2,115
2017 adjusted
1,021
582
117
210
303
(92)
2,141
Organic movement
39
38
31
47
112
(7)
260
Organic movement
36
31
35
44
106
12
264
Acquisitions and disposals
42
1
1
-
-
-
44
Acquisitions and disposals
44
1
1
-
-
-
46
Exchange
57
(23)
1
(7)
(2)
6
32
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2018 reported
1,101
614
153
254
409
(80)
2,451
2018 reported
1,101
614
153
254
409
(80)
2,451
Organic movement %
4
6
26
22
37
(9)
12
Organic movement %
4
5
30
21
35
13
12
Organic operating margin
Organic operating margin
2018
46.1%
37.9%
18.6%
38.0%
29.1%
n/a
35.0%
2018
46.3%
37.6%
18.5%
37.9%
29.3%
n/a
35.2%
2017
47.0%
37.6%
15.7%
33.5%
23.8%
n/a
33.4%
2017
47.4%
37.6%
15.2%
34.2%
24.4%
n/a
33.7%
Margin improvement/ (decline) (bps)
(91)
34
285
445
530
n/a
152
Margin improvement/ (decline) (bps)
(112)
(1)
336
365
486
n/a
152
Key categories - as calculated under new methodology
Key categories - as calculated under old methodology
Organic volume movement
%
Organic net sales
movement
%
Reported net sales movement
%
Organic volume movement
%
Organic net sales
movement
%
Reported net sales movement
%
Spirits
4
7
5
Spirits
4
7
5
Scotch
4
7
6
Scotch
4
7
6
Vodka
2
2
2
Vodka
2
3
2
US whiskey
2
4
6
US whiskey
2
4
6
Canadian whisky
5
5
6
Canadian whisky
5
5
6
Rum
(4)
(4)
(5)
Rum
(4)
(3)
(5)
Indian-Made Foreign Liquor (IMFL) whisky
9
11
2
Indian-Made Foreign Liquor (IMFL) whisky
9
11
2
Liqueurs
-
2
2
Liqueurs
-
3
2
Gin
25
29
29
Gin
25
28
29
Tequila
18
29
36
Tequila
18
29
36
Beer
2
4
5
Beer
2
4
5
Ready to drink
9
16
15
Ready to drink
9
16
15
Organic movement calculations for the year ended 30 June 2018 under both the new and old methodologies were as follows:
Year ended 30 June 2018
As calculated under new methodology
As calculated under old methodology
North
America
£ million
Europe and Turkey
£ million
Africa
£ million
Latin America and Caribbean
£ million
Asia Pacific
£ million
Corporate
£ million
Total
£ million
North
America
£ million
Europe and Turkey
£ million
Africa
£ million
Latin America and Caribbean
£ million
Asia Pacific
£ million
Corporate
£ million
Total
£ million
Sales
Sales
2017 reported
4,725
4,985
2,132
1,303
4,923
46
18,114
2017 reported
4,725
4,985
2,132
1,303
4,923
46
18,114
Exchange
8
(6)
(3)
26
14
-
39
Exchange
(261)
(113)
(130)
(61)
(160)
1
(724)
Reclassification
(8)
16
1
2
(11)
-
-
Reclassification
(8)
16
1
2
(11)
-
-
Disposals
-
(2)
-
-
(216)
-
(218)
Disposals
-
(3)
-
-
(207)
-
(210)
2017 adjusted
4,725
4,993
2,130
1,331
4,710
46
17,935
2017 adjusted
4,456
4,885
2,003
1,244
4,545
47
17,180
Organic movement
168
391
92
94
522
4
1,271
Organic movement
160
347
80
108
489
5
1,189
Acquisitions and disposals
58
-
-
-
8
-
66
Acquisitions and disposals
55
-
-
-
8
-
63
Exchange
(280)
(152)
(139)
(73)
(198)
2
(840)
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2018 reported
4,671
5,232
2,083
1,352
5,042
52
18,432
2018 reported
4,671
5,232
2,083
1,352
5,042
52
18,432
Organic movement %
4
8
4
7
11
9
7
Organic movement %
4
7
4
9
11
11
7
Net sales
Net sales
2017 reported
4,161
2,824
1,556
1,044
2,419
46
12,050
2017 reported
4,161
2,824
1,556
1,044
2,419
46
12,050
Exchange
8
(2)
(2)
27
14
-
45
Exchange
(228)
(15)
(105)
(43)
(64)
1
(454)
Reclassification
(8)
16
1
2
(11)
-
-
Reclassification
(8)
16
1
2
(11)
-
-
Disposals
-
(2)
-
-
(57)
-
(59)
Disposals
-
(3)
-
-
(55)
-
(58)
2017 adjusted
4,161
2,836
1,555
1,073
2,365
46
12,036
2017 adjusted
3,925
2,822
1,452
1,003
2,289
47
11,538
Organic movement
150
124
48
55
232
4
613
Organic movement
142
110
39
66
210
5
572
Acquisitions and disposals
52
-
-
-
4
-
56
Acquisitions and disposals
49
-
-
-
4
-
53
Exchange
(247)
(28)
(112)
(59)
(98)
2
(542)
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2018 reported
4,116
2,932
1,491
1,069
2,503
52
12,163
2018 reported
4,116
2,932
1,491
1,069
2,503
52
12,163
Organic movement %
4
4
3
5
10
9
5
Organic movement %
4
4
3
7
9
11
5
Marketing
Marketing
2017 reported
642
443
166
195
343
9
1,798
2017 reported
642
443
166
195
343
9
1,798
Exchange
11
10
(2)
4
(13)
(1)
9
Exchange
(21)
2
(11)
(8)
(5)
(1)
(44)
Reclassification
(2)
1
-
1
-
-
-
Reclassification
(2)
1
-
1
-
-
-
Disposals
-
-
-
-
-
-
-
Disposals
-
-
-
-
-
-
-
2017 adjusted
651
454
164
200
330
8
1,807
2017 adjusted
619
446
155
188
338
8
1,754
Organic movement
42
19
6
5
70
(3)
139
Organic movement
35
28
3
8
50
(4)
120
Acquisitions and disposals
8
-
-
-
-
-
8
Acquisitions and disposals
8
-
-
-
-
-
8
Exchange
(39)
1
(12)
(9)
(12)
(1)
(72)
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2018 reported
662
474
158
196
388
4
1,882
2018 reported
662
474
158
196
388
4
1,882
Organic movement %
6
4
4
3
21
(38)
8
Organic movement %
6
6
2
4
15
(50)
7
Operating profit before exceptional items
Operating profit before exceptional items
2017 reported
1,899
936
218
250
487
(189)
3,601
2017 reported
1,899
936
218
250
487
(189)
3,601
Exchange
102
(5)
16
37
41
1
192
Exchange
(60)
7
(20)
10
1
6
(56)
Reclassification
(4)
11
2
(1)
(8)
-
-
Reclassification
(4)
11
2
(1)
(8)
-
-
Acquisitions and disposals
-
-
-
1
-
1
2
Acquisitions and disposals
-
-
-
-
(2)
1
(1)
2017 adjusted
1,997
942
236
287
520
(187)
3,795
2017 adjusted
1,835
954
200
259
478
(182)
3,544
Organic movement
24
93
-
48
85
32
282
Organic movement
43
74
(9)
49
89
24
270
Acquisitions and disposals
4
-
-
-
1
-
5
Acquisitions and disposals
4
-
-
-
1
-
5
Exchange
(143)
(7)
(45)
(27)
(38)
(3)
(263)
Exchange
n/a
n/a
n/a
n/a
n/a
n/a
n/a
2018 reported
1,882
1,028
191
308
568
(158)
3,819
2018 reported
1,882
1,028
191
308
568
(158)
3,819
Organic movement %
1
10
-
17
16
17
7
Organic movement %
2
8
(5)
19
19
13
8
Organic operating margin
Organic operating margin
2018
46.9%
35.0%
14.7%
29.7%
23.3%
n/a
32.2%
2018
46.2%
35.1%
12.8%
28.8%
22.7%
n/a
31.5%
2017
48.0%
33.2%
15.2%
26.7%
22.0%
n/a
31.5%
2017
46.8%
33.8%
13.8%
25.8%
20.9%
n/a
30.7%
Margin (decline)/ improvement (bps)
(111)
175
(45)
295
131
n/a
70
Margin (decline)/ improvement (bps)
(58)
126
(96)
299
181
n/a
78
Key categories - as calculated under new methodology
Key categories - as calculated under old methodology
Organic volume movement
%
Organic net sales
movement
%
Reported net sales movement
%
Organic volume
movement
%
Organic net sales
movement
%
Reported net sales movement
%
Spirits
3
5
2
Spirits
3
5
2
Scotch
3
2
1
Scotch
3
2
1
Vodka
1
(1)
(6)
Vodka
1
(1)
(6)
US whiskey
2
7
1
US whiskey
2
7
1
Canadian whisky
-
2
(4)
Canadian whisky
-
2
(4)
Rum
(3)
1
(4)
Rum
(3)
1
(4)
Indian-Made Foreign Liquor (IMFL) whisky
4
8
(1)
Indian-Made Foreign Liquor (IMFL) whisky
4
8
(1)
Liqueurs
6
5
4
Liqueurs
6
6
4
Gin
17
17
14
Gin
17
16
14
Tequila
35
40
56
Tequila
35
40
56
Beer
1
5
(1)
Beer
1
4
(1)
Ready to drink
2
4
-
Ready to drink
2
4
-
Contacts
Investor enquiries: Andy Ryan +44 (0) 20 8978 6504
Editor notes
Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits and beer categories. These brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
Diageo's products are sold in more than 180 countries around the world. The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). For more information about Diageo, its people, brands, and performance, visit us at Diageo.com. For our global resource that promotes responsible drinking through the sharing of best practice tools, information and initiatives, visit DRINKiQ.com.
Celebrating life, every day, everywhere.
Diageo plc
LEI: 213800ZVIELEA55JMJ32
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