Edition:
United Kingdom

Diageo Reports Higher Net Sales; Announces Share Buyback


Thursday, 31 Jan 2019 

Jan 31 (Reuters) - Diageo PLC ::H1 UNDERLYING EPS 77 PENCE.CONTINUE TO EXPECT TO DELIVER MID-SINGLE DIGIT ORGANIC NET SALES GROWTH FOR YEAR.CONTINUE TO EXPECT TO EXPAND OPERATING MARGINS IN LINE WITH OUR PREVIOUS GUIDANCE OF 175 BPS FOR THREE YEARS ENDING 30 JUNE 2019.HY REPORTED NET SALES (£6.9 BILLION) WAS UP 5.8% WITH ORGANIC GROWTH PARTIALLY OFFSET BY UNFAVOURABLE EXCHANGE.HY REPORTED OPERATING PROFIT (£2.4 BILLION) WAS UP 11.0%, DRIVEN BY ORGANIC GROWTH.INTERIM DIVIDEND INCREASED 5% TO 26.1 PENCE PER SHARE.EXCHANGE RATE MOVEMENT FOR YEAR ENDING 30 JUNE 2019 IS ESTIMATED TO ADVERSELY IMPACT NET SALES BY ABOUT £80 MILLION.IN SIX MONTHS ENDED 31 DECEMBER 2018, 46.5 MILLION SHARES WERE REPURCHASED FOR AN AGGREGATE CONSIDERATION OF £1.275 BILLION..SALE OF A PORTFOLIO OF 19 BRANDS TO SAZERAC RESULTED IN EXCEPTIONAL GAIN BEFORE TAXATION OF £154 MILLION.BOARD APPROVED AN INCREMENTAL SHARE BUYBACK OF £660 MILLION IN HY.