|
Preliminary results, year ended 30 June 2020
4 August 2020
|
Ivan Menezes, Chief Executive, commenting on the results
said:
|
Summary financial information
|
|
P12
|
2020
|
2019
|
Organic
growth
%
|
Reported
growth
%
|
||||
Volume
|
EUm
|
217.0
|
245.9
|
|
(11
|
)
|
(12
|
)
|
|
Net
sales
|
£
million
|
11,752
|
|
12,867
|
|
(8
|
)
|
(9
|
)
|
Marketing
|
£
million
|
1,841
|
2,042
|
|
(10
|
)
|
(10
|
)
|
|
Operating
profit before exceptional items
|
£
million
|
3,494
|
|
4,116
|
|
(14
|
)
|
(15
|
)
|
Exceptional
operating items(i)
|
£
million
|
(1,357
|
)
|
(74
|
)
|
|
|
||
Operating
profit
|
£
million
|
2,137
|
|
4,042
|
|
|
(47
|
)
|
|
Share
of associate and joint venture profit after tax
|
£
million
|
282
|
|
312
|
|
|
(10
|
)
|
|
Non-operating
exceptional items(i)
|
£
million
|
(23
|
)
|
144
|
|
|
|
||
Net
finance charges
|
£
million
|
(353
|
)
|
(263
|
)
|
|
|
||
Exceptional
taxation credit/(charge)(i)
|
£
million
|
154
|
|
(39
|
)
|
|
|
||
Tax
rate including exceptional items
|
%
|
28.8
|
|
21.2
|
|
36
|
|
||
Tax
rate before exceptional items
|
%
|
21.7
|
|
20.6
|
|
|
5
|
|
|
Profit
attributable to parent company’s shareholders
|
£
million
|
1,409
|
|
3,160
|
|
|
(55
|
)
|
|
Basic
earnings per share
|
pence
|
60.1
|
|
130.7
|
|
|
(54
|
)
|
|
Earnings
per share before exceptional items
|
pence
|
109.4
|
|
130.8
|
|
|
(16
|
)
|
|
Recommended full year dividend
|
pence
|
69.9
|
|
68.6
|
|
|
2
|
|
Net sales (£ million)
|
Net sales
|
£
million
|
|
2019
|
12,867
|
|
Exchange(i)
|
32
|
|
Acquisitions and disposals
|
(76
|
)
|
Reclassification(ii)
|
(10
|
)
|
Volume
|
(1,416
|
)
|
Price/mix
|
355
|
|
2020
|
11,752
|
|
Operating profit (£ million)
|
Operating profit
|
£
million
|
|
2019
|
4,042
|
|
Exceptional operating items
|
(1,283
|
)
|
Exchange
|
(1
|
)
|
Acquisitions and disposals
|
(34
|
)
|
FVA(i)
|
2
|
|
Organic movement
|
(589
|
)
|
2020
|
2,137
|
|
|
Operating margin (%)
|
Operating margin
|
ppt
|
|
2019
|
31.4
|
|
Exceptional operating items
|
(10.97
|
)
|
Exchange
|
(0.09
|
)
|
Acquisitions and disposals
|
(0.08
|
)
|
Other(i)
|
0.03
|
|
Gross
margin
|
(1.74
|
)
|
Marketing
|
0.22
|
|
Other operating items
|
(0.60
|
)
|
2020
|
18.2
|
|
Basic earnings per share (pence)
|
Basic earnings per share
|
pence
|
|
2019
|
130.7
|
|
Exceptional items after tax
|
(49.2
|
)
|
Acquisitions
and disposals(i)
|
(1.2
|
)
|
Organic operating profit growth
|
(24.4
|
)
|
Associates and joint ventures
|
(1.2
|
)
|
Finance
charges(ii)
|
(1.2
|
)
|
Tax(iii)
|
3.9
|
|
Share
buyback(i)
|
1.1
|
|
Non-controlling interests
|
1.5
|
|
Other(iv)
|
0.1
|
|
2020
|
60.1
|
|
Free cash flow (£ million)
|
Free cash flow
|
£
million
|
|
2019
|
2,608
|
|
Exchange(iii)
|
(1
|
)
|
Operating
profit(iv)
|
(541
|
)
|
Working
capital(v)
|
(106
|
)
|
Capex
|
(47
|
)
|
Tax
|
(96
|
)
|
Interest
|
(56
|
)
|
Other(vi)
|
(127
|
)
|
2020
|
1,634
|
|
Return on average invested capital (%)(i)
|
Return on average invested capital
|
ppt
|
|
2019
|
15.1
|
|
Exchange
|
0.22
|
|
Acquisitions and disposals
|
(0.12
|
)
|
Organic operating profit growth
|
(2.60
|
)
|
Associates and joint ventures
|
(0.24
|
)
|
Tax
|
0.29
|
|
Other
|
(0.22
|
)
|
2020
|
12.4
|
|
Reported growth by region F20 FY
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit(i)
|
||||||||||||
|
%
|
EUm
|
%
|
£
million
|
%
|
£
million
|
%
|
£
million
|
||||||||
North
America
|
(2
|
)
|
(1.0
|
)
|
4
|
|
163
|
|
(5
|
)
|
(35
|
)
|
4
|
|
86
|
|
Europe
and Turkey
|
(11
|
)
|
(5.2
|
)
|
(13
|
)
|
(372
|
)
|
(13
|
)
|
(62
|
)
|
(25
|
)
|
(257
|
)
|
Africa
|
(14
|
)
|
(4.8
|
)
|
(16
|
)
|
(251
|
)
|
(8
|
)
|
(14
|
)
|
(63
|
)
|
(174
|
)
|
Latin
America and Caribbean
|
(15
|
)
|
(3.4
|
)
|
(20
|
)
|
(222
|
)
|
(23
|
)
|
(46
|
)
|
(32
|
)
|
(117
|
)
|
Asia
Pacific
|
(15
|
)
|
(14.5
|
)
|
(16
|
)
|
(418
|
)
|
(11
|
)
|
(47
|
)
|
(29
|
)
|
(202
|
)
|
Corporate
|
—
|
|
—
|
|
(28
|
)
|
(15
|
)
|
100
|
|
3
|
|
(22
|
)
|
42
|
|
Diageo
|
(12
|
)
|
(28.9
|
)
|
(9
|
)
|
(1,115
|
)
|
(10
|
)
|
(201
|
)
|
(15
|
)
|
(622
|
)
|
Organic growth by region F20 FY
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit(i)
|
||||||||||||
|
%
|
EUm
|
%
|
£
million
|
%
|
£
million
|
%
|
£
million
|
||||||||
North America
|
—
|
|
0.1
|
|
2
|
|
105
|
|
(6
|
)
|
(49
|
)
|
4
|
|
80
|
|
Europe and Turkey
|
(11
|
)
|
(5.2
|
)
|
(12
|
)
|
(358
|
)
|
(12
|
)
|
(56
|
)
|
(24
|
)
|
(243
|
)
|
Africa
|
(13
|
)
|
(4.0
|
)
|
(13
|
)
|
(200
|
)
|
(8
|
)
|
(14
|
)
|
(56
|
)
|
(150
|
)
|
Latin America and Caribbean
|
(15
|
)
|
(3.4
|
)
|
(15
|
)
|
(169
|
)
|
(15
|
)
|
(29
|
)
|
(29
|
)
|
(107
|
)
|
Asia Pacific
|
(15
|
)
|
(14.5
|
)
|
(16
|
)
|
(423
|
)
|
(11
|
)
|
(47
|
)
|
(29
|
)
|
(207
|
)
|
Corporate
|
—
|
|
—
|
|
(29
|
)
|
(16
|
)
|
—
|
|
—
|
|
20
|
|
38
|
|
Diageo
|
(11
|
)
|
(27.0
|
)
|
(8
|
)
|
(1,061
|
)
|
(10
|
)
|
(195
|
)
|
(14
|
)
|
(589
|
)
|
Organic net sales growth
|
|
F20H1
|
|
F20H2(i)
|
||
|
%
|
|
%
|
||
North
America
|
6
|
|
|
(1
|
)
|
Europe
and Turkey
|
3
|
|
|
(31
|
)
|
Africa
|
5
|
|
|
(33
|
)
|
Latin
America and Caribbean
|
2
|
|
|
(40
|
)
|
Asia
Pacific
|
4
|
|
|
(38
|
)
|
Corporate
|
(4
|
)
|
|
(56
|
)
|
Diageo
|
4
|
|
|
(23
|
)
|
Notes to the business and financial review
|
North America
|
Key financials £ million:
|
||||||||||||||
|
2019
|
FX
|
Acquisitions
and
disposals
|
Organic
movement
|
Other(v)
|
2020
|
Reported
movement
%
|
|||||||
Net
sales
|
4,460
|
|
101
|
|
(43
|
)
|
105
|
|
—
|
|
4,623
|
|
4
|
|
Marketing
|
762
|
|
11
|
|
3
|
|
(49
|
)
|
—
|
|
727
|
|
(5
|
)
|
Operating profit before exceptional items
|
1,948
|
|
44
|
|
(28
|
)
|
80
|
|
(10
|
)
|
2,034
|
|
4
|
|
Exceptional
operating items(vi)
|
—
|
|
|
|
|
|
54
|
|
|
|||||
Operating profit
|
1,948
|
|
|
|
|
|
2,088
|
|
7
|
Markets:
|
|
|
|
|
|
Global giants, local stars and reserve(i):
|
||||||||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|
|
Organic
volume
movement(iii)
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
North
America
|
—
|
|
(2
|
)
|
2
|
|
4
|
|
|
Crown
Royal
|
8
|
|
8
|
|
10
|
|
|
|
|
|
|
|
Smirnoff
|
(1
|
)
|
(2
|
)
|
—
|
|
||||
US
Spirits(ii)
|
(1
|
)
|
(3
|
)
|
2
|
|
3
|
|
|
Johnnie Walker
|
(9
|
)
|
(13
|
)
|
(11
|
)
|
DBC
USA
|
7
|
|
7
|
|
8
|
|
10
|
|
|
Captain Morgan
|
(3
|
)
|
(4
|
)
|
(2
|
)
|
Canada
|
7
|
|
4
|
|
7
|
|
7
|
|
|
Don Julio
|
21
|
|
26
|
|
29
|
|
|
|
|
|
|
|
Ketel
One(iv)
|
(2
|
)
|
(4
|
)
|
(2
|
)
|
||||
Spirits
|
—
|
|
(3
|
)
|
2
|
|
3
|
|
|
Guinness
|
(6
|
)
|
(5
|
)
|
(3
|
)
|
Beer
|
(7
|
)
|
(7
|
)
|
(6
|
)
|
(4
|
)
|
|
Baileys
|
—
|
|
1
|
|
3
|
|
Ready to drink
|
17
|
|
17
|
|
19
|
|
22
|
|
|
Bulleit
|
5
|
|
4
|
|
7
|
|
|
|
|
|
|
|
Cîroc vodka
|
(15
|
)
|
(14
|
)
|
(13
|
)
|
||||
|
|
|
|
|
|
Casamigos
|
61
|
|
68
|
|
72
|
|
||||
|
|
|
|
|
|
Tanqueray
|
—
|
|
—
|
|
3
|
|
Europe and Turkey
|
|
Key financials £ million:
|
||||||||||||||
|
2019
|
FX
|
Acquisitions
and
disposals
|
Organic
movement
|
Other(iii)
|
2020
|
Reported
movement
%
|
|||||||
Net sales
|
2,939
|
|
(23
|
)
|
9
|
|
(358
|
)
|
—
|
|
2,567
|
|
(13
|
)
|
Marketing
|
490
|
|
(10
|
)
|
4
|
|
(56
|
)
|
—
|
|
428
|
|
(13
|
)
|
Operating profit before exceptional items
|
1,014
|
|
(7
|
)
|
(3
|
)
|
(243
|
)
|
(4
|
)
|
757
|
|
(25
|
)
|
Exceptional
operating items(iv)
|
(18
|
)
|
|
|
|
|
(62
|
)
|
|
|||||
Operating profit
|
996
|
|
|
|
|
|
695
|
|
(30)
|
|
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(i):
|
||||||||||
|
|
Organic
volume
movement
|
Reported
volume
movement
|
Organicnet
sales
movement
|
Reported
net
sales
movement
|
|
|
Organic
volume
movement(ii)
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
||||||||
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
||||||||
|
|
Europe
and
Turkey
|
|
|
|
|
|
Guinness
|
(19
|
)
|
(20
|
)
|
(21
|
)
|
||||
|
|
(11
|
)
|
(11
|
)
|
(12
|
)
|
(13
|
)
|
|
Johnnie
Walker
|
(17
|
)
|
(20
|
)
|
(21
|
)
|
|
|
|
|
|
|
|
|
|
Baileys
|
(4
|
)
|
(6
|
)
|
(8
|
)
|
||||
Europe
|
(10
|
)
|
(10
|
)
|
(12
|
)
|
(12
|
)
|
|
Smirnoff
|
(14
|
)
|
(11
|
)
|
(12
|
)
|
||
|
|
Turkey
|
(12
|
)
|
(12
|
)
|
(6
|
)
|
(7
|
)
|
|
Captain Morgan
|
2
|
|
6
|
|
6
|
|
|
|
|
|
|
|
|
|
Yenì Raki
|
(22
|
)
|
(15
|
)
|
(15
|
)
|
||||
|
|
Spirits
|
(11
|
)
|
(11
|
)
|
(11
|
)
|
(11
|
)
|
|
Tanqueray
|
(12
|
)
|
(15
|
)
|
(16
|
)
|
|
|
Beer
|
(16
|
)
|
(16
|
)
|
(20
|
)
|
(21
|
)
|
|
JƐB
|
(18
|
)
|
(17
|
)
|
(17
|
)
|
|
|
Ready
to drink
|
(3
|
)
|
(3
|
)
|
(1
|
)
|
—
|
|
|
|
|
|
|
Africa
|
|
Key financials £ million:
|
||||||||||||
|
2019
|
FX
|
Acquisitions
and
disposals
|
Organic
movement
|
2020
|
Reported
movement
%
|
||||||
Net
sales
|
1,597
|
|
(10
|
)
|
(41
|
)
|
(200
|
)
|
1,346
|
|
(16
|
)
|
Marketing
|
174
|
|
—
|
|
—
|
|
(14
|
)
|
160
|
|
(8
|
)
|
Operating profit before exceptional items
|
275
|
|
(21
|
)
|
(3
|
)
|
(150
|
)
|
101
|
|
(63
|
)
|
Exceptional
operating items(iv)
|
—
|
|
|
|
|
(145
|
)
|
|
||||
Operating profit
|
275
|
|
|
|
|
(44
|
)
|
(116)
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(i):
|
||||||||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|
|
Organic
volume
movement(ii)
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
Africa(iii)
|
(13
|
)
|
(14
|
)
|
(13
|
)
|
(16
|
)
|
|
Guinness
|
(17
|
)
|
(16
|
)
|
(16
|
)
|
|
|
|
|
|
|
Johnnie
Walker
|
(8
|
)
|
(18
|
)
|
(19
|
)
|
||||
East
Africa
|
(11
|
)
|
(11
|
)
|
(10
|
)
|
(9
|
)
|
|
Smirnoff
|
(25
|
)
|
(23
|
)
|
(25
|
)
|
Africa
Regional Markets(iii)
|
(12
|
)
|
(17
|
)
|
(8
|
)
|
(13
|
)
|
|
|
|
|
|
|||
Nigeria
|
(10
|
)
|
(10
|
)
|
(20
|
)
|
(19
|
)
|
|
Other
beer:
|
||||||
South
Africa(iii)
|
(23
|
)
|
(25
|
)
|
(25
|
)
|
(33
|
)
|
|
|
|
|
|
|||
|
|
|
|
|
|
Malta
|
(16
|
)
|
(10
|
)
|
(13
|
)
|
||||
Spirits
|
(10
|
)
|
(10
|
)
|
(14
|
)
|
(15
|
)
|
|
Senator
|
(16
|
)
|
(13
|
)
|
(12
|
)
|
Beer
|
(16
|
)
|
(16
|
)
|
(13
|
)
|
(13
|
)
|
|
Tusker
|
(22
|
)
|
(20
|
)
|
(20
|
)
|
Ready
to drink(iii)
|
(6
|
)
|
(17
|
)
|
(7
|
)
|
(27
|
)
|
|
Serengeti
|
15
|
|
19
|
|
22
|
|
Latin America and Caribbean
|
|
Key financials £ million:
|
||||||||||||||||
|
2019
|
FX
|
Reclassifi-
cation(i)
|
Acquisitions
and
disposals
|
Organic
movement
|
Other(ii)
|
2020
|
Reported
movement
%
|
||||||||
Net
sales
|
1,130
|
|
(42
|
)
|
(10
|
)
|
(1
|
)
|
(169
|
)
|
—
|
|
908
|
|
(20
|
)
|
Marketing
|
201
|
|
(7
|
)
|
(10
|
)
|
—
|
|
(29
|
)
|
—
|
|
155
|
|
(23
|
)
|
Operating profit before exceptional items
|
365
|
|
(26
|
)
|
—
|
|
—
|
|
(107
|
)
|
16
|
|
248
|
|
(32
|
)
|
Exceptional
operating items(v)
|
—
|
|
|
|
|
|
|
(6
|
)
|
|
||||||
Operating profit
|
365
|
|
|
|
|
|
|
242
|
|
(34)
|
|
Markets:
|
|
|
|
|
|
Global giants and local
stars(iii):
|
||||||||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|
|
Organic
volume
movement(iv)
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
||||||||
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
|
Latin
America and Caribbean
|
|
|
|
|
|
Johnnie
Walker
|
(27
|
)
|
(29
|
)
|
(33
|
)
|
||||
|
(15
|
)
|
(15
|
)
|
(15
|
)
|
(20
|
)
|
|
Buchanan’s
|
(15
|
)
|
(14
|
)
|
(17
|
)
|
|
|
|
|
|
|
|
|
Old Parr
|
(17
|
)
|
(16
|
)
|
(20
|
)
|
||||
|
PUB
|
(14
|
)
|
(14
|
)
|
(7
|
)
|
(17
|
)
|
|
Smirnoff
|
(7
|
)
|
4
|
|
(2
|
)
|
|
Mexico
|
(14
|
)
|
(14
|
)
|
(19
|
)
|
(21
|
)
|
|
Black & White
|
(9
|
)
|
(10
|
)
|
(18
|
)
|
|
CCA
|
(17
|
)
|
(18
|
)
|
(16
|
)
|
(16
|
)
|
|
Tanqueray
|
6
|
|
17
|
|
7
|
|
|
Andean
|
2
|
|
3
|
|
8
|
|
(2
|
)
|
|
Baileys
|
(15
|
)
|
(13
|
)
|
(21
|
)
|
|
PEBAC
|
(29
|
)
|
(29
|
)
|
(44
|
)
|
(47
|
)
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Spirits
|
(16
|
)
|
(16
|
)
|
(16
|
)
|
(21
|
)
|
|
|
|
|
|
|||
|
Beer
|
(10
|
)
|
(10
|
)
|
(9
|
)
|
(11
|
)
|
|
|
|
|
|
|||
|
Ready
to drink
|
—
|
|
—
|
|
8
|
|
2
|
|
|
|
|
|
|
Asia Pacific
|
Key financials £ million:
|
||||||||||||
|
2019
|
FX
|
Acquisitions
and
disposals
|
Organic
movement
|
2020
|
Reported
movement
%
|
||||||
Net
sales
|
2,688
|
|
5
|
|
—
|
|
(423
|
)
|
2,270
|
|
(16
|
)
|
Marketing
|
412
|
|
—
|
|
—
|
|
(47
|
)
|
365
|
|
(11
|
)
|
Operating profit before exceptional items
|
703
|
|
5
|
|
—
|
|
(207
|
)
|
501
|
|
(29
|
)
|
Exceptional
operating items(i)
|
(35
|
)
|
|
|
|
(1,198
|
)
|
|
||||
Operating profit
|
668
|
|
|
|
|
(697
|
)
|
(204)
|
|
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(ii):
|
||||||||||
|
|
Organic
volume
movement(i)
|
Reported
volume
movement
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|
|
Organic
volume
movement(iii)
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
||||||||
|
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
|
|
Asia
Pacific
|
(15
|
)
|
(15
|
)
|
(16
|
)
|
(16
|
)
|
|
Johnnie
Walker
|
(23
|
)
|
(25
|
)
|
(24
|
)
|
|
|
|
|
|
|
|
|
McDowell's
|
(17
|
)
|
(15
|
)
|
(15
|
)
|
||||
|
|
India
|
(15
|
)
|
(15
|
)
|
(17
|
)
|
(16
|
)
|
|
Shui
Jing Fang(iv)
|
(9
|
)
|
(16
|
)
|
(16
|
)
|
|
|
Greater
China
|
(4
|
)
|
(4
|
)
|
(7
|
)
|
(7
|
)
|
|
Guinness
|
(10
|
)
|
(12
|
)
|
(10
|
)
|
|
|
Australia
|
5
|
|
5
|
|
6
|
|
2
|
|
|
The
Singleton
|
(5
|
)
|
(1
|
)
|
2
|
|
|
|
South
East Asia
|
(19
|
)
|
(20
|
)
|
(23
|
)
|
(21
|
)
|
|
Royal
Challenge
|
(15
|
)
|
(15
|
)
|
(14
|
)
|
|
|
North
Asia
|
(18
|
)
|
(17
|
)
|
(15
|
)
|
(14
|
)
|
|
Windsor
|
(44
|
)
|
(26
|
)
|
(28
|
)
|
Travel
Retail Asia and Middle East
|
(47
|
)
|
(47
|
)
|
(46
|
)
|
(47
|
)
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Spirits
|
(15
|
)
|
(15
|
)
|
(16
|
)
|
(15
|
)
|
|
|
|
|
|
|||
Beer
|
(11
|
)
|
(11
|
)
|
(12
|
)
|
(10
|
)
|
|
|
|
|
|
|||||
|
|
Ready
to drink
|
(4
|
)
|
(4
|
)
|
(1
|
)
|
(5
|
)
|
|
|
|
|
|
Key categories:
|
||||||
|
Organic
volume
movement(iii)
%
|
Organic
net
sales
movement
%
|
Reported
net
sales
movement
%
|
|||
Spirits(i)
|
(11
|
)
|
(8
|
)
|
(8
|
)
|
Scotch
|
(16
|
)
|
(17
|
)
|
(17
|
)
|
Vodka(ii)(iv)
|
(8
|
)
|
(8
|
)
|
(8
|
)
|
Canadian
whisky
|
7
|
|
8
|
|
8
|
|
Rum(ii)
|
(11
|
)
|
(7
|
)
|
(7
|
)
|
Liqueurs
|
(4
|
)
|
(4
|
)
|
(5
|
)
|
Indian-Made
Foreign Liquor (IMFL) whisky
|
(14
|
)
|
(14
|
)
|
(13
|
)
|
Tequila
|
12
|
|
25
|
|
27
|
|
Gin(ii)
|
(9
|
)
|
(4
|
)
|
(5
|
)
|
US
whiskey
|
(1
|
)
|
3
|
|
4
|
|
Beer
|
(15
|
)
|
(15
|
)
|
(15
|
)
|
Ready to drink
|
5
|
|
8
|
|
3
|
|
Global giants, local stars and reserve(i):
|
||||||
|
Organic
volume
movement(ii)
%
|
Organic
net
sales
movement
%
|
Reportednet
sales
movement
%
|
|||
Global giants
|
|
|
|
|||
Johnnie
Walker
|
(20
|
)
|
(22
|
)
|
(22
|
)
|
Smirnoff
|
(9
|
)
|
(6
|
)
|
(6
|
)
|
Baileys
|
(3
|
)
|
(3
|
)
|
(3
|
)
|
Captain
Morgan
|
(2
|
)
|
(2
|
)
|
—
|
|
Tanqueray
|
(5
|
)
|
(4
|
)
|
(4
|
)
|
Guinness
|
(15
|
)
|
(16
|
)
|
(16
|
)
|
Local stars
|
|
|
|
|||
Crown
Royal
|
7
|
|
8
|
|
10
|
|
Yenì
Raki
|
(22
|
)
|
(15
|
)
|
(15
|
)
|
Buchanan’s
|
(14
|
)
|
(12
|
)
|
(13
|
)
|
JƐB
|
(18
|
)
|
(18
|
)
|
(18
|
)
|
Windsor
|
(44
|
)
|
(26
|
)
|
(28
|
)
|
Old
Parr
|
(17
|
)
|
(15
|
)
|
(19
|
)
|
Bundaberg
|
3
|
|
—
|
|
(4
|
)
|
Black
& White
|
(7
|
)
|
(5
|
)
|
(10
|
)
|
Ypióca
|
(17
|
)
|
(14
|
)
|
(24
|
)
|
McDowell's
|
(17
|
)
|
(15
|
)
|
(15
|
)
|
Shui
Jing Fang(iii)
|
(9
|
)
|
(16
|
)
|
(16
|
)
|
Reserve
|
|
|
|
|||
Scotch
malts
|
(5
|
)
|
(3
|
)
|
(1
|
)
|
Cîroc
vodka
|
(17
|
)
|
(17
|
)
|
(16
|
)
|
Ketel
One(iv)
|
(4
|
)
|
(6
|
)
|
(4
|
)
|
Don
Julio
|
(1
|
)
|
15
|
|
16
|
|
Bulleit
|
4
|
|
3
|
|
6
|
|
SUMMARY INCOME STATEMENT
|
|
2019
|
|
Exchange
(a)
|
Acquisitions
and
disposals
(b)
|
Organic
movement(i)
|
Fair
value
remeasure-
ment
(d)
|
Reclassifi-
cation(ii)
|
2020
|
|
|||||
|
£
million
|
£
million
|
£
million
|
£
million
|
£
million
|
£ million
|
£ million
|
|||||||
Sales
|
19,294
|
|
(1
|
)
|
(108
|
)
|
(1,478
|
)
|
—
|
|
(10
|
)
|
17,697
|
|
Excise
duties
|
(6,427
|
)
|
33
|
|
32
|
|
417
|
|
—
|
|
—
|
|
(5,945
|
)
|
Net
sales
|
12,867
|
|
32
|
|
(76
|
)
|
(1,061
|
)
|
—
|
|
(10
|
)
|
11,752
|
|
Cost
of sales
|
(4,866
|
)
|
(31
|
)
|
41
|
|
193
|
|
9
|
|
—
|
|
(4,654
|
)
|
Gross
profit
|
8,001
|
|
1
|
|
(35
|
)
|
(868
|
)
|
9
|
|
(10
|
)
|
7,098
|
|
Marketing
|
(2,042
|
)
|
3
|
|
(7
|
)
|
195
|
|
—
|
|
10
|
|
(1,841
|
)
|
Other
operating items
|
(1,843
|
)
|
(5
|
)
|
8
|
|
84
|
|
(7
|
)
|
—
|
|
(1,763
|
)
|
Operating
profit before exceptional items
|
4,116
|
|
(1
|
)
|
(34
|
)
|
(589
|
)
|
2
|
|
—
|
|
3,494
|
|
Exceptional
operating items (c)
|
(74
|
)
|
|
|
|
|
|
(1,357
|
)
|
|||||
Operating
profit
|
4,042
|
|
|
|
|
|
|
2,137
|
|
|||||
Non-operating
items (c)
|
144
|
|
|
|
|
|
|
(23
|
)
|
|||||
Net
finance charges
|
(263
|
)
|
|
|
|
|
|
(353
|
)
|
|||||
Share
of after tax results of associates and joint ventures
|
312
|
|
|
|
|
|
|
282
|
|
|||||
Profit
before taxation
|
4,235
|
|
|
|
|
|
|
2,043
|
|
|||||
Taxation
(e)
|
(898
|
)
|
|
|
|
|
|
(589
|
)
|
|||||
Profit
for the year
|
3,337
|
|
|
|
|
|
|
1,454
|
|
|
Gains/(losses)
|
|
|
£ million
|
|
Translation
impact
|
56
|
|
Transaction
impact
|
(57
|
)
|
Operating profit before exceptional items
|
(1
|
)
|
Net
finance charges – translation impact
|
(5
|
)
|
Net
finance charges – transaction impact
|
3
|
|
Net
finance charges
|
(2
|
)
|
Associates
– translation impact
|
(3
|
)
|
Profit before exceptional items and taxation
|
(6
|
)
|
|
Year ended
30 June 2020
|
Year ended
30 June 2019
|
||
Exchange
rates
|
1
|
|
||
Translation £1
=
|
$1.26
|
|
$1.29
|
|
Transaction £1
=
|
$1.35
|
|
$1.33
|
|
Translation £1
=
|
€1.14
|
|
€1.13
|
|
Transaction £1
=
|
€1.12
|
|
€1.13
|
|
MOVEMENT IN NET BORROWINGS AND EQUITY
|
|
2020
|
2019
|
||
|
£
million
|
£
million
|
||
Net borrowings at the beginning of the year
|
(11,277
|
)
|
(9,091
|
)
|
Free
cash flow (a)
|
1,634
|
|
2,608
|
|
Acquisitions
(b)
|
(130
|
)
|
(56
|
)
|
Sale
of businesses and brands (c)
|
11
|
|
426
|
|
Share
buyback programme
|
(1,282
|
)
|
(2,775
|
)
|
Proceeds from issue
of share capital
|
1
|
|
1
|
|
Net
sale of own shares for share schemes (d)
|
54
|
|
50
|
|
Dividends paid to
non-controlling interests
|
(111
|
)
|
(112
|
)
|
Net
movements in bonds (e)
|
4,368
|
|
1,598
|
|
Purchase of shares
of non-controlling interests (f)
|
(62
|
)
|
(784
|
)
|
Net
movements in other borrowings (g)
|
(285
|
)
|
721
|
|
Equity
dividends paid
|
(1,646
|
)
|
(1,623
|
)
|
Net
increase in cash and cash equivalents
|
2,552
|
|
54
|
|
Net
increase in bonds and other borrowings
|
(4,089
|
)
|
(2,331
|
)
|
Exchange
differences (h)
|
(95
|
)
|
(22
|
)
|
Other
non-cash items (i)
|
(86
|
)
|
113
|
|
Adoption
of IFRS 16
|
(251
|
)
|
—
|
|
Net borrowings at the end of the year
|
(13,246
|
)
|
(11,277
|
)
|
|
2020
|
2019
|
||
|
£
million
|
£
million
|
||
Equity at the beginning of the year
|
10,156
|
|
11,713
|
|
Profit
for the year
|
1,454
|
|
3,337
|
|
Exchange
adjustments (a)
|
(282
|
)
|
255
|
|
Remeasurement of
post employment plans net of taxation
|
3
|
|
36
|
|
Purchase of shares
of non-controlling interests (b)
|
(62
|
)
|
(784
|
)
|
Dividends to
non-controlling interests
|
(117
|
)
|
(114
|
)
|
Equity
dividends paid
|
(1,646
|
)
|
(1,623
|
)
|
Share
buyback programme
|
(1,256
|
)
|
(2,801
|
)
|
Other
reserve movements
|
190
|
|
137
|
|
Equity at the end of the year
|
8,440
|
|
10,156
|
|
|
|
|
Year ended
30 June 2020
|
|
Year
ended
30
June 2019
|
||
|
Notes
|
£ million
|
|
£
million
|
|||
|
|
|
|
|
|||
|
Sales
|
2
|
17,697
|
|
|
19,294
|
|
|
Excise
duties
|
|
(5,945
|
)
|
|
(6,427
|
)
|
|
Net
sales
|
2
|
11,752
|
|
|
12,867
|
|
|
Cost of
sales
|
|
(4,654
|
)
|
|
(4,866
|
)
|
|
Gross
profit
|
|
7,098
|
|
|
8,001
|
|
|
Marketing
|
|
(1,841
|
)
|
|
(2,042
|
)
|
|
Other
operating items
|
|
(3,120
|
)
|
|
(1,917
|
)
|
|
Operating
profit
|
2
|
2,137
|
|
|
4,042
|
|
|
Non-operating
items
|
3
|
(23
|
)
|
|
144
|
|
|
Finance
income
|
4
|
366
|
|
|
442
|
|
|
Finance
charges
|
4
|
(719
|
)
|
|
(705
|
)
|
|
Share
of after tax results of associates and joint ventures
|
|
282
|
|
|
312
|
|
|
Profit
before taxation
|
|
2,043
|
|
|
4,235
|
|
|
Taxation
|
5
|
(589
|
)
|
|
(898
|
)
|
|
Profit for the year
|
|
1,454
|
|
|
3,337
|
|
|
|
|
|
|
|
||
|
Attributable
to:
|
|
|
|
|
||
|
Equity
shareholders of the parent company
|
|
1,409
|
|
|
3,160
|
|
|
Non-controlling
interests
|
|
45
|
|
|
177
|
|
|
|
|
1,454
|
|
|
3,337
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
Weighted
average number of shares
|
|
million
|
|
million
|
||
|
Shares
in issue excluding own shares
|
|
2,346
|
|
|
2,418
|
|
|
Dilutive potential
ordinary shares
|
|
8
|
|
|
10
|
|
|
|
|
2,354
|
|
|
2,428
|
|
|
|
|
|
|
|
||
|
|
|
pence
|
|
pence
|
||
|
Basic
earnings per share
|
|
60.1
|
|
|
130.7
|
|
|
|
|
|
|
|
||
|
Diluted
earnings per share
|
|
59.9
|
|
|
130.1
|
|
|
|
|
|
|
|
|
Year ended
30 June 2020
|
|
Year
ended
30
June 2019
|
||
|
£ million
|
|
£
million
|
||
Other comprehensive income
|
|
|
|
||
Items that will not be recycled subsequently to the
income statement
|
|
|
|
||
Net
remeasurement of post employment plans
|
|
|
|
||
-
group
|
38
|
|
|
33
|
|
-
associates and joint ventures
|
(14
|
)
|
|
2
|
|
Tax on
post employment plans
|
(21
|
)
|
|
1
|
|
|
3
|
|
|
36
|
|
Items that may be recycled subsequently to the income
statement
|
|
|
|
||
Exchange
differences on translation of foreign operations
|
|
|
|
||
-
group
|
(104
|
)
|
|
274
|
|
-
associates and joint ventures
|
82
|
|
|
19
|
|
-
non-controlling interests
|
(37
|
)
|
|
55
|
|
Net
investment hedges
|
(227
|
)
|
|
(93
|
)
|
Exchange
loss recycled to the income statement
|
|
|
|
||
-
on translation of foreign operations
|
4
|
|
|
—
|
|
Tax
on exchange differences
|
4
|
|
|
(19
|
)
|
Effective portion
of changes in fair value of cash flow hedges
|
|
|
|
||
- hedge
of foreign currency debt of the group
|
221
|
|
|
180
|
|
-
transaction exposure hedging of the group
|
(43
|
)
|
|
(86
|
)
|
-
commodity price risk hedging of the group
|
(11
|
)
|
|
(9
|
)
|
-
hedges by associates and joint ventures
|
6
|
|
|
(6
|
)
|
-
recycled to income statement - hedge of foreign currency debt of
the group
|
(75
|
)
|
|
(82
|
)
|
-
recycled to income statement - transaction exposure hedging of the
group
|
42
|
|
|
45
|
|
-
recycled to income statement - commodity price risk hedging of the
group
|
8
|
|
|
—
|
|
Tax on
effective portion of changes in fair value of cash flow
hedges
|
(23
|
)
|
|
(11
|
)
|
Hyperinflation
adjustment
|
(18
|
)
|
|
(22
|
)
|
Tax on
hyperinflation adjustment
|
4
|
|
|
6
|
|
|
(167
|
)
|
|
251
|
|
Other comprehensive (loss)/profit, net of tax, for the
year
|
(164
|
)
|
|
287
|
|
Profit
for the year
|
1,454
|
|
|
3,337
|
|
Total comprehensive income for the year
|
1,290
|
|
|
3,624
|
|
|
|
|
|
||
Attributable to:
|
|
|
|
||
Equity
shareholders of the parent company
|
1,282
|
|
|
3,392
|
|
Non-controlling
interests
|
8
|
|
|
232
|
|
Total comprehensive income for the year
|
1,290
|
|
|
3,624
|
|
|
|
30 June 2020
|
|
30 June 2019
|
||||||||
|
Notes
|
£ million
|
|
£ million
|
|
£
million
|
|
£
million
|
||||
Non-current assets
|
|
|
|
|
|
|
|
|
||||
Intangible
assets
|
|
11,300
|
|
|
|
|
12,557
|
|
|
|
||
Property,
plant and equipment
|
|
4,926
|
|
|
|
|
4,455
|
|
|
|
||
Biological
assets
|
|
51
|
|
|
|
|
34
|
|
|
|
||
Investments
in associates and joint ventures
|
|
3,557
|
|
|
|
|
3,173
|
|
|
|
||
Other
investments
|
|
41
|
|
|
|
|
49
|
|
|
|
||
Other
receivables
|
|
46
|
|
|
|
|
53
|
|
|
|
||
Other
financial assets
|
|
686
|
|
|
|
|
404
|
|
|
|
||
Deferred
tax assets
|
|
119
|
|
|
|
|
138
|
|
|
|
||
Post
employment benefit assets
|
|
1,111
|
|
|
|
|
1,060
|
|
|
|
||
|
|
|
|
21,837
|
|
|
|
|
21,923
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
||||
Inventories
|
6
|
5,772
|
|
|
|
|
5,472
|
|
|
|
||
Trade
and other receivables
|
|
2,111
|
|
|
|
|
2,694
|
|
|
|
||
Assets
held for sale
|
|
—
|
|
|
|
|
65
|
|
|
|
||
Corporate tax receivables
|
|
190
|
|
|
|
|
83
|
|
|
|
||
Other
financial assets
|
|
75
|
|
|
|
|
127
|
|
|
|
||
Cash
and cash equivalents
|
7
|
3,323
|
|
|
|
|
932
|
|
|
|
||
|
|
|
|
11,471
|
|
|
|
|
9,373
|
|
||
Total assets
|
|
|
|
33,308
|
|
|
|
|
31,296
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
||||
Borrowings
and bank overdrafts
|
7
|
(1,995
|
)
|
|
|
|
(1,959
|
)
|
|
|
||
Other
financial liabilities
|
|
(389
|
)
|
|
|
|
(307
|
)
|
|
|
||
Share buyback liability
|
|
—
|
|
|
|
|
(26
|
)
|
|
|
||
Trade
and other payables
|
|
(3,683
|
)
|
|
|
|
(4,202
|
)
|
|
|
||
Liabilities
held for sale
|
|
—
|
|
|
|
|
(32
|
)
|
|
|
||
Corporate tax payables
|
|
(246
|
)
|
|
|
|
(378
|
)
|
|
|
||
Provisions
|
|
(183
|
)
|
|
|
|
(99
|
)
|
|
|
||
|
|
|
|
(6,496
|
)
|
|
|
|
(7,003
|
)
|
||
Non-current liabilities
|
|
|
|
|
|
|
|
|
||||
Borrowings
|
7
|
(14,790
|
)
|
|
|
|
(10,596
|
)
|
|
|
||
Other
financial liabilities
|
|
(393
|
)
|
|
|
|
(124
|
)
|
|
|
||
Other
payables
|
|
(175
|
)
|
|
|
|
(222
|
)
|
|
|
||
Provisions
|
|
(293
|
)
|
|
|
|
(317
|
)
|
|
|
||
Deferred
tax liabilities
|
|
(1,972
|
)
|
|
|
|
(2,032
|
)
|
|
|
||
Post
employment benefit liabilities
|
|
(749
|
)
|
|
|
|
(846
|
)
|
|
|
||
|
|
|
|
(18,372
|
)
|
|
|
|
(14,137
|
)
|
||
Total liabilities
|
|
|
|
(24,868
|
)
|
|
|
|
(21,140
|
)
|
||
Net assets
|
|
|
|
8,440
|
|
|
|
|
10,156
|
|
||
|
|
|
|
|
|
|
|
|
||||
Equity
|
|
|
|
|
|
|
|
|
||||
Share
capital
|
|
742
|
|
|
|
|
753
|
|
|
|
||
Share
premium
|
|
1,351
|
|
|
|
|
1,350
|
|
|
|
||
Other
reserves
|
|
2,272
|
|
|
|
|
2,372
|
|
|
|
||
Retained
earnings
|
|
2,407
|
|
|
|
|
3,886
|
|
|
|
||
Equity attributable to equity shareholders of the parent
company
|
|
|
|
6,772
|
|
|
|
|
8,361
|
|
||
Non-controlling interests
|
|
|
|
1,668
|
|
|
|
|
1,795
|
|
||
Total equity
|
|
|
|
8,440
|
|
|
|
|
10,156
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained
earnings/(deficit)
|
|
|
|
|
|
|
|||||||||||||
|
|
Share
capital
£ million
|
|
Share
premium
£ million
|
|
Other
reserves
£ million
|
|
Own
shares
£ million
|
|
Other
retained
earnings
£ million
|
|
Total
£ million
|
|
Equity
attributable
to
parent
company
shareholders
£ million
|
|
Non-
controlling
interests
£ million
|
|
Total
equity
£ million
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
At 30 June 2018
|
780
|
|
|
1,349
|
|
|
2,133
|
|
|
(2,144
|
)
|
|
7,830
|
|
|
5,686
|
|
|
9,948
|
|
|
1,765
|
|
|
11,713
|
|
|
Profit
for the year
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,160
|
|
|
3,160
|
|
|
3,160
|
|
|
177
|
|
|
3,337
|
|
|
Other
comprehensive income
|
—
|
|
|
—
|
|
|
212
|
|
|
—
|
|
|
20
|
|
|
20
|
|
|
232
|
|
|
55
|
|
|
287
|
|
|
Total comprehensive income
|
—
|
|
|
—
|
|
|
212
|
|
|
—
|
|
|
3,180
|
|
|
3,180
|
|
|
3,392
|
|
|
232
|
|
|
3,624
|
|
|
Employee
share schemes
|
—
|
|
|
—
|
|
|
—
|
|
|
118
|
|
|
(49
|
)
|
|
69
|
|
|
69
|
|
|
—
|
|
|
69
|
|
|
Share-based
incentive plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
49
|
|
|
49
|
|
|
—
|
|
|
49
|
|
|
Share-based
incentive plans in respect of associates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
Tax on share-based incentive plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
20
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|
Shares
issued
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Purchase
of non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(694
|
)
|
|
(694
|
)
|
|
(694
|
)
|
|
(90
|
)
|
|
(784
|
)
|
|
Non-controlling interest in respect of new subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
Change
in fair value of put option
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
Share
buyback programme
|
(27
|
)
|
|
—
|
|
|
27
|
|
|
—
|
|
|
(2,801
|
)
|
|
(2,801
|
)
|
|
(2,801
|
)
|
|
—
|
|
|
(2,801
|
)
|
|
Dividends
paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,623
|
)
|
|
(1,623
|
)
|
|
(1,623
|
)
|
|
(114
|
)
|
|
(1,737
|
)
|
|
At 30 June 2019
|
753
|
|
|
1,350
|
|
|
2,372
|
|
|
(2,026
|
)
|
|
5,912
|
|
|
3,886
|
|
|
8,361
|
|
|
1,795
|
|
|
10,156
|
|
|
Profit
for the year
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,409
|
|
|
1,409
|
|
|
1,409
|
|
|
45
|
|
|
1,454
|
|
|
Other
comprehensive loss
|
—
|
|
|
—
|
|
|
(116
|
)
|
|
—
|
|
|
(11
|
)
|
|
(11
|
)
|
|
(127
|
)
|
|
(37
|
)
|
|
(164
|
)
|
|
Total comprehensive (loss)/income
|
—
|
|
|
—
|
|
|
(116
|
)
|
|
—
|
|
|
1,398
|
|
|
1,398
|
|
|
1,282
|
|
|
8
|
|
|
1,290
|
|
|
Employee
share schemes
|
—
|
|
|
—
|
|
|
—
|
|
|
90
|
|
|
(36
|
)
|
|
54
|
|
|
54
|
|
|
—
|
|
|
54
|
|
|
Share-based
incentive plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
Share-based
incentive plans in respect of associates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
Tax on
share-based incentive plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Share based payments and purchase of treasury shares in respect of
subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
Shares
issued
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Transfers
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Purchase
of non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
(39
|
)
|
|
(39
|
)
|
|
(23
|
)
|
|
(62
|
)
|
|
Non-controlling
interest in respect of new subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
Change
in fair value of put option
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|
Share
buyback programme
|
(11
|
)
|
|
—
|
|
|
11
|
|
|
—
|
|
|
(1,256
|
)
|
|
(1,256
|
)
|
|
(1,256
|
)
|
|
—
|
|
|
(1,256
|
)
|
|
Dividends
declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,646
|
)
|
|
(1,646
|
)
|
|
(1,646
|
)
|
|
(117
|
)
|
|
(1,763
|
)
|
|
At 30 June 2020
|
742
|
|
|
1,351
|
|
|
2,272
|
|
|
(1,936
|
)
|
|
4,343
|
|
|
2,407
|
|
|
6,772
|
|
|
1,668
|
|
|
8,440
|
|
|
Year ended
30 June 2020
|
|
Year
ended
30
June 2019
|
||||||||
|
£ million
|
|
£ million
|
|
£
million
|
|
£
million
|
||||
Cash
flows from operating activities
|
|
|
|
|
|
|
|
||||
Profit
for the year
|
1,454
|
|
|
|
|
3,337
|
|
|
|
||
Taxation
|
589
|
|
|
|
|
898
|
|
|
|
||
Share
of after tax results of associates and joint ventures
|
(282
|
)
|
|
|
|
(312
|
)
|
|
|
||
Net
finance charges
|
353
|
|
|
|
|
263
|
|
|
|
||
Non-operating
items
|
23
|
|
|
|
|
(144
|
)
|
|
|
||
Operating
profit
|
|
|
2,137
|
|
|
|
|
4,042
|
|
||
Increase in
inventories
|
(366
|
)
|
|
|
|
(434
|
)
|
|
|
||
Decrease
in trade and other receivables
|
523
|
|
|
|
|
11
|
|
|
|
||
(Decrease)/increase
in trade and other payables and provisions
|
(485
|
)
|
|
|
|
201
|
|
|
|
||
Net
increase in working capital
|
|
|
(328
|
)
|
|
|
|
(222
|
)
|
||
Depreciation,
amortisation and impairment
|
1,839
|
|
|
|
|
374
|
|
|
|
||
Dividends
received
|
4
|
|
|
|
|
168
|
|
|
|
||
Post
employment payments less amounts included in operating
profit
|
(109
|
)
|
|
|
|
(121
|
)
|
|
|
||
Other
items
|
(14
|
)
|
|
|
|
64
|
|
|
|
||
|
|
|
1,720
|
|
|
|
|
485
|
|
||
Cash
generated from operations
|
|
|
3,529
|
|
|
|
|
4,305
|
|
||
Interest
received
|
185
|
|
|
|
|
216
|
|
|
|
||
Interest
paid
|
(493
|
)
|
|
|
|
(468
|
)
|
|
|
||
Taxation
paid
|
(901
|
)
|
|
|
|
(805
|
)
|
|
|
||
|
|
|
(1,209
|
)
|
|
|
|
(1,057
|
)
|
||
Net
cash inflow from operating activities
|
|
|
2,320
|
|
|
|
|
3,248
|
|
||
Cash
flows from investing activities
|
|
|
|
|
|
|
|
||||
Disposal of
property, plant and equipment and computer software
|
14
|
|
|
|
|
32
|
|
|
|
||
Purchase of
property, plant and equipment and computer software
|
(700
|
)
|
|
|
|
(671
|
)
|
|
|
||
Movements in loans
and other investments
|
—
|
|
|
|
|
(1
|
)
|
|
|
||
Sale of
businesses and brands
|
11
|
|
|
|
|
426
|
|
|
|
||
Acquisition of
businesses
|
(130
|
)
|
|
|
|
(56
|
)
|
|
|
||
Net
cash outflow from investing activities
|
|
|
(805
|
)
|
|
|
|
(270
|
)
|
||
Cash
flows from financing activities
|
|
|
|
|
|
|
|
||||
Share
buyback programme
|
(1,282
|
)
|
|
|
|
(2,775
|
)
|
|
|
||
Proceeds from issue
of share capital
|
1
|
|
|
|
|
1
|
|
|
|
||
Net
sale of own shares for share schemes
|
54
|
|
|
|
|
50
|
|
|
|
||
Dividends paid to
non-controlling interests
|
(111
|
)
|
|
|
|
(112
|
)
|
|
|
||
Purchase
of shares of non-controlling interests
|
(62
|
)
|
|
|
|
(784
|
)
|
|
|
||
Proceeds from
bonds
|
5,188
|
|
|
|
|
2,766
|
|
|
|
||
Repayment of
bonds
|
(820
|
)
|
|
|
|
(1,168
|
)
|
|
|
||
Net
movements in other borrowings
|
(285
|
)
|
|
|
|
721
|
|
|
|
||
Equity
dividends paid
|
(1,646
|
)
|
|
|
|
(1,623
|
)
|
|
|
||
Net
cash inflow/(outflow) from financing activities
|
|
|
1,037
|
|
|
|
|
(2,924
|
)
|
||
|
|
|
|
|
|
|
|
||||
Net
increase in net cash and cash equivalents
|
|
|
2,552
|
|
|
|
|
54
|
|
||
Exchange
differences
|
|
|
(120
|
)
|
|
|
|
(26
|
)
|
||
Net
cash and cash equivalents at beginning of the year
|
|
|
721
|
|
|
|
|
693
|
|
||
Net
cash and cash equivalents at end of the year
|
|
|
3,153
|
|
|
|
|
721
|
|
||
|
|
|
|
|
|
|
|
||||
Net
cash and cash equivalents consist of:
|
|
|
|
|
|
|
|
||||
Cash
and cash equivalents
|
|
|
3,323
|
|
|
|
|
932
|
|
||
Bank
overdrafts
|
|
|
(170
|
)
|
|
|
|
(211
|
)
|
||
|
|
|
3,153
|
|
|
|
|
721
|
|
Year ended
|
North
America
|
Europe
and
Turkey
|
Africa
|
Latin
America
and
Caribbean
|
Asia
Pacific
|
ISC
|
Eliminate
inter-
segment
sales
|
Total
operating
segments
|
Corporate
and other
|
Total
|
||||||||||
30 June 2020
|
£ million
|
£ million
|
£
million
|
£
million
|
£ million
|
£
million
|
£ million
|
£ million
|
£ million
|
£ million
|
||||||||||
Sales
|
5,222
|
|
4,697
|
|
1,911
|
|
1,184
|
|
4,645
|
|
1,343
|
|
(1,343
|
)
|
17,659
|
|
38
|
|
17,697
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
4,445
|
|
2,501
|
|
1,300
|
|
944
|
|
2,253
|
|
1,439
|
|
(1,341
|
)
|
11,541
|
|
38
|
|
11,579
|
|
Acquisitions
and disposals
|
32
|
|
10
|
|
50
|
|
—
|
|
1
|
|
—
|
|
—
|
|
93
|
|
—
|
|
93
|
|
ISC
allocation
|
11
|
|
60
|
|
4
|
|
10
|
|
12
|
|
(98
|
)
|
—
|
|
(1
|
)
|
1
|
|
—
|
|
Retranslation
to actual exchange rates
|
135
|
|
(4
|
)
|
(8
|
)
|
(46
|
)
|
4
|
|
2
|
|
(2
|
)
|
81
|
|
(1
|
)
|
80
|
|
Net sales
|
4,623
|
|
2,567
|
|
1,346
|
|
908
|
|
2,270
|
|
1,343
|
|
(1,343
|
)
|
11,714
|
|
38
|
|
11,752
|
|
Operating profit/(loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
2,007
|
|
730
|
|
116
|
|
254
|
|
498
|
|
45
|
|
—
|
|
3,650
|
|
(152
|
)
|
3,498
|
|
Acquisitions
and disposals
|
(1
|
)
|
(4
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(5
|
)
|
—
|
|
(5
|
)
|
ISC
allocation
|
6
|
|
26
|
|
2
|
|
5
|
|
6
|
|
(45
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
Fair
value remeasurement of contingent consideration
|
(10
|
)
|
(4
|
)
|
—
|
|
7
|
|
—
|
|
—
|
|
—
|
|
(7
|
)
|
—
|
|
(7
|
)
|
Fair
value remeasurement of biological assets
|
—
|
|
—
|
|
—
|
|
9
|
|
—
|
|
—
|
|
—
|
|
9
|
|
—
|
|
9
|
|
Retranslation
to actual exchange rates
|
32
|
|
9
|
|
(17
|
)
|
(27
|
)
|
(3
|
)
|
—
|
|
—
|
|
(6
|
)
|
5
|
|
(1
|
)
|
Operating profit/(loss) before exceptional items
|
2,034
|
|
757
|
|
101
|
|
248
|
|
501
|
|
—
|
|
—
|
|
3,641
|
|
(147
|
)
|
3,494
|
|
Exceptional
items
|
54
|
|
(62
|
)
|
(145
|
)
|
(6
|
)
|
(1,198
|
)
|
—
|
|
—
|
|
(1,357
|
)
|
—
|
|
(1,357
|
)
|
Operating profit/(loss)
|
2,088
|
|
695
|
|
(44
|
)
|
242
|
|
(697
|
)
|
—
|
|
—
|
|
2,284
|
|
(147
|
)
|
2,137
|
|
Non-operating
items
|
|
|
|
|
|
|
|
|
|
(23
|
)
|
|||||||||
Net
finance charges
|
|
|
|
|
|
|
|
|
|
(353
|
)
|
|||||||||
Share
of after tax results of associates and joint ventures
|
|
|
|
|
|
|
|
|
|
282
|
|
|||||||||
Profit before taxation
|
|
|
|
|
|
|
|
|
|
2,043
|
|
Year ended
|
North
America
|
Europe
and
Turkey
|
Africa
|
Latin
America
and
Caribbean
|
Asia
Pacific
|
ISC
|
Eliminate
inter-
segment
sales
|
Total
operating
segments
|
Corporate
and other
|
Total
|
||||||||||
30 June 2019
|
£ million
|
£ million
|
£ million
|
£ million
|
£
million
|
£ million
|
£ million
|
£
million
|
£ million
|
£ million
|
||||||||||
Sales
|
5,074
|
|
5,132
|
|
2,235
|
|
1,444
|
|
5,356
|
|
1,739
|
|
(1,739
|
)
|
19,241
|
|
53
|
|
19,294
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
4,034
|
|
2,951
|
|
1,529
|
|
1,095
|
|
2,656
|
|
1,843
|
|
(1,738
|
)
|
12,370
|
|
54
|
|
12,424
|
|
Acquisitions
and disposals
|
88
|
|
1
|
|
1
|
|
1
|
|
1
|
|
—
|
|
—
|
|
92
|
|
—
|
|
92
|
|
ISC
allocation
|
11
|
|
63
|
|
5
|
|
15
|
|
11
|
|
(105
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
Retranslation
to actual exchange rates
|
327
|
|
(76
|
)
|
62
|
|
19
|
|
20
|
|
1
|
|
(1
|
)
|
352
|
|
(1
|
)
|
351
|
|
Net sales
|
4,460
|
|
2,939
|
|
1,597
|
|
1,130
|
|
2,688
|
|
1,739
|
|
(1,739
|
)
|
12,814
|
|
53
|
|
12,867
|
|
Operating profit/(loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
1,755
|
|
972
|
|
257
|
|
312
|
|
671
|
|
139
|
|
—
|
|
4,106
|
|
(186
|
)
|
3,920
|
|
Acquisitions
and disposals
|
29
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
28
|
|
—
|
|
28
|
|
ISC
allocation
|
13
|
|
72
|
|
6
|
|
32
|
|
16
|
|
(139
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
Retranslation
to actual exchange rates
|
151
|
|
(29
|
)
|
12
|
|
21
|
|
16
|
|
—
|
|
—
|
|
171
|
|
(3
|
)
|
168
|
|
Operating profit/(loss) before exceptional items
|
1,948
|
|
1,014
|
|
275
|
|
365
|
|
703
|
|
—
|
|
—
|
|
4,305
|
|
(189
|
)
|
4,116
|
|
Exceptional
items
|
—
|
|
(18
|
)
|
—
|
|
—
|
|
(35
|
)
|
—
|
|
—
|
|
(53
|
)
|
(21
|
)
|
(74
|
)
|
Operating profit/(loss)
|
1,948
|
|
996
|
|
275
|
|
365
|
|
668
|
|
—
|
|
—
|
|
4,252
|
|
(210
|
)
|
4,042
|
|
Non-operating
items
|
|
|
|
|
|
|
|
|
|
144
|
|
|||||||||
Net
finance charges
|
|
|
|
|
|
|
|
|
|
(263
|
)
|
|||||||||
Share
of after tax results of associates and joint ventures
|
|
|
|
|
|
|
|
|
|
312
|
|
|||||||||
Profit before taxation
|
|
|
|
|
|
|
|
|
|
4,235
|
|
|
Year ended
30 June 2020
|
|
Year
endedzz
30
June 2019
|
||
|
£ million
|
|
£ million
|
||
|
|
|
|
||
Exceptional operating items
|
|
|
|
||
Brand, goodwill, tangible and other assets impairment
|
(1,345
|
)
|
|
—
|
|
Donations
|
(89
|
)
|
|
—
|
|
Obsolete inventories
|
(30
|
)
|
|
—
|
|
Substitution drawback
|
83
|
|
|
—
|
|
Indirect tax in Korea
|
24
|
|
|
(35
|
)
|
Guaranteed minimum pension equalisation
|
—
|
|
|
(21
|
)
|
French tax audit penalty
|
—
|
|
|
(18
|
)
|
|
(1,357
|
)
|
|
(74
|
)
|
Non-operating items
|
|
|
|
||
Step acquisitions
|
8
|
|
|
—
|
|
Sale of businesses and brands
|
|
|
|
||
United
National Breweries
|
(32
|
)
|
|
(9
|
)
|
Loss
on disposal of associate
|
(1
|
)
|
|
—
|
|
Portfolio
of 19 brands
|
2
|
|
|
155
|
|
USL
wine business
|
—
|
|
|
(2
|
)
|
|
(23
|
)
|
|
144
|
|
|
|
|
|
||
French tax audit interest
|
—
|
|
|
(9
|
)
|
Exceptional items before taxation
|
(1,380
|
)
|
|
61
|
|
|
|
|
|
||
Items included in taxation
|
|
|
|
||
Tax on
exceptional operating items
|
154
|
|
|
4
|
|
Tax on
exceptional non-operating items
|
—
|
|
|
(33
|
)
|
Exceptional
taxation
|
—
|
|
|
(10
|
)
|
|
154
|
|
|
(39
|
)
|
|
|
|
|
||
Total exceptional items
|
(1,226
|
)
|
|
22
|
|
|
|
|
|
||
Attributable to:
|
|
|
|
||
Equity
shareholders of the parent company
|
(1,157
|
)
|
|
(4
|
)
|
Non-controlling
interests
|
(69
|
)
|
|
26
|
|
Total exceptional items
|
(1,226
|
)
|
|
22
|
|
|
Year ended
30 June 2020
|
|
Year
ended
30
June 2019
|
||
|
£ million
|
|
£
million
|
||
|
|
|
|
||
Interest
income
|
192
|
|
|
232
|
|
Fair
value gain on financial instruments
|
123
|
|
|
155
|
|
Total
interest income
|
315
|
|
|
387
|
|
Interest
charges
|
(510
|
)
|
|
(471
|
)
|
Interest
charge on leases classified as finance leases under the previous
standard
|
(6
|
)
|
|
(7
|
)
|
Interest
charge on leases (IFRS 16 adoption impact)
|
(9
|
)
|
|
—
|
|
Fair
value loss on financial instruments
|
(123
|
)
|
|
(157
|
)
|
Total
interest charges
|
(648
|
)
|
|
(635
|
)
|
Net
interest charges
|
(333
|
)
|
|
(248
|
)
|
|
|
|
|
||
Net
finance income in respect of post employment plans in
surplus
|
26
|
|
|
29
|
|
Hyperinflation
adjustment in respect of Venezuela (a)
|
6
|
|
|
10
|
|
Interest
income in respect of direct and indirect tax
|
16
|
|
|
16
|
|
Other
finance income
|
3
|
|
|
—
|
|
Total
other finance income
|
51
|
|
|
55
|
|
Net
finance charge in respect of post employment plans in
deficit
|
(17
|
)
|
|
(22
|
)
|
Unwinding of
discounts
|
(24
|
)
|
|
(17
|
)
|
Interest
charge in respect of direct and indirect tax
|
(22
|
)
|
|
(11
|
)
|
Change
in financial liability (Level 3)
|
(6
|
)
|
|
(8
|
)
|
Other
finance charges (exceptional)
|
—
|
|
|
(9
|
)
|
Guarantee
fees
|
(1
|
)
|
|
—
|
|
Other
finance charges
|
(1
|
)
|
|
(3
|
)
|
Total
other finance charges
|
(71
|
)
|
|
(70
|
)
|
Net
other finance charges
|
(20
|
)
|
|
(15
|
)
|
|
Year ended 30 June 2020
|
|
Year ended 30 June 2019
|
||
|
At
estimated
exchange
rate
|
At
DICOM exchange
rate
|
|
At
estimated
exchange
rate
|
At
DICOM
exchange
rate
|
|
10,024,865 VES/£
|
252,558
VES/£
|
|
403,700
VES/£
|
8,553
VES/£
|
|
£
million
|
£
million
|
|
£
million
|
£
million
|
Net
sales
|
—
|
|
3
|
|
|
—
|
|
3
|
|
Operating
profit
|
—
|
|
10
|
|
|
—
|
|
2
|
|
Other
finance income - hyperinflation adjustment
|
6
|
|
222
|
|
|
10
|
|
455
|
|
Net
cash inflow from operating activities
|
—
|
|
6
|
|
|
—
|
|
5
|
|
Net
assets
|
48
|
|
1,893
|
|
|
56
|
|
2,643
|
|
|
30 June 2020
|
|
30
June 2019
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Raw
materials and consumables
|
363
|
|
|
338
|
|
Work in
progress
|
48
|
|
|
46
|
|
Maturing
inventories
|
4,562
|
|
|
4,334
|
|
Finished goods and
goods for resale
|
799
|
|
|
754
|
|
|
5,772
|
|
|
5,472
|
|
|
30 June 2020
|
|
30 June 2019
|
||
|
£ million
|
|
£
million
|
||
|
|
|
|
||
Borrowings
due within one year and bank overdrafts
|
(1,995
|
)
|
|
(1,959
|
)
|
Borrowings
due after one year
|
(14,790
|
)
|
|
(10,596
|
)
|
Fair
value of foreign currency forwards and swaps
|
497
|
|
|
370
|
|
Fair
value of interest rate hedging instruments
|
189
|
|
|
104
|
|
Lease liabilities
|
(470
|
)
|
|
(128
|
)
|
|
(16,569
|
)
|
|
(12,209
|
)
|
Cash
and cash equivalents
|
3,323
|
|
|
932
|
|
|
(13,246
|
)
|
|
(11,277
|
)
|
|
|
Year ended
30 June 2020
|
|
Year
ended
30
June 2019
|
||
|
£
million
|
|
£
million
|
|||
|
|
|
|
|
||
|
Net increase in cash and cash equivalents before
exchange
|
2,552
|
|
|
54
|
|
|
Net
increase in bonds and other borrowings(i)
|
(4,089
|
)
|
|
(2,331
|
)
|
|
Net increase in net borrowings from cash flows
|
(1,537
|
)
|
|
(2,277
|
)
|
|
Exchange
differences on net borrowings
|
(95
|
)
|
|
(22
|
)
|
|
Other
non-cash items(ii)
|
(86
|
)
|
|
113
|
|
|
Adoption of IFRS 16
|
(251
|
)
|
|
—
|
|
|
Net borrowings at beginning of the year
|
(11,277
|
)
|
|
(9,091
|
)
|
|
Net borrowings at end of the year
|
(13,246
|
)
|
|
(11,277
|
)
|
|
30 June 2020
|
|
30
June 2019
|
||
|
£
million
|
|
£
million
|
||
Derivative
assets
|
758
|
|
|
531
|
|
Derivative
liabilities
|
(145
|
)
|
|
(129
|
)
|
Valuation
techniques based on observable market input (Level 2)
|
613
|
|
|
402
|
|
Financial
assets - other
|
116
|
|
|
86
|
|
Financial
liabilities - other
|
(416
|
)
|
|
(401
|
)
|
Valuation
techniques based on unobservable market input (Level
3)
|
(300
|
)
|
|
(315
|
)
|
|
Zacapa financial
liability
|
|
Contingent
consideration
recognised on
acquisition of
businesses(i)
|
|
Zacapa financial
liability
|
|
Contingent
consideration
recognised on
acquisition of
businesses
|
||||
|
2020
|
|
2020
|
|
2019
|
|
2019
|
||||
|
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
||||
At the beginning of the year
|
(174
|
)
|
|
(227
|
)
|
|
(164
|
)
|
|
(188
|
)
|
Net losses included in the income statement
|
(6
|
)
|
|
(24
|
)
|
|
(8
|
)
|
|
(25
|
)
|
Net losses included in exchange in other comprehensive
income
|
(5
|
)
|
|
(5
|
)
|
|
(8
|
)
|
|
(8
|
)
|
Net gains/(losses) included in retained earnings
|
9
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
Additions
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
(15
|
)
|
Settlement of liabilities
|
9
|
|
|
49
|
|
|
9
|
|
|
9
|
|
At the end of the year
|
(167
|
)
|
|
(249
|
)
|
|
(174
|
)
|
|
(227
|
)
|
|
|
|
|
|
|
|
|
|
Year ended
30 June 2020
|
|
Year
ended
30
June 2019
|
||
|
£ million
|
|
£
million
|
||
Amounts recognised as distributions to equity shareholders in the
year
|
|
|
|
||
Final dividend for the year ended 30 June 2019 of 42.47 pence per
share (2018 - 40.40 pence)
|
1,006
|
|
|
993
|
|
Interim dividend for the year ended 30 June 2020 of 27.41 per share
(2019 – 26.1 pence)
|
640
|
|
|
630
|
|
|
1,646
|
|
|
1,623
|
|
|
£ million
|
|
|
|
|
Brands
|
102
|
|
Inventories
|
2
|
|
Other working capital
|
(3
|
)
|
Deferred tax
|
(19
|
)
|
Cash
|
2
|
|
Fair value of assets and liabilities
|
84
|
|
Goodwill arising on acquisition
|
8
|
|
Step acquisitions
|
(23
|
)
|
Consideration payable
|
69
|
|
Satisfied by:
|
|
|
Cash
consideration paid
|
(27
|
)
|
Contingent
consideration payable
|
(42
|
)
|
|
(69
|
)
|
|
|
|
Cash consideration paid for subsidiaries
|
(27
|
)
|
Cash consideration paid for Casamigos
|
(49
|
)
|
Cash consideration paid in respect of other prior year
acquisitions
|
(9
|
)
|
Cash consideration paid for investments in associates
|
(6
|
)
|
Capital injection in associates
|
(41
|
)
|
Cash acquired
|
2
|
|
Net cash outflow on acquisition of business
|
(130
|
)
|
Purchase of shares of non-controlling interests
|
(62
|
)
|
Total net cash outflow
|
(192
|
)
|
|
UNB
|
|
Other
|
|
Total
|
|||
£ million
|
|
£ million
|
|
£ million
|
||||
Sale consideration
|
|
|
|
|
|
|||
Cash received in year
|
10
|
|
|
1
|
|
|
11
|
|
Transaction costs payable
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
9
|
|
|
1
|
|
|
10
|
|
Net assets disposed of
|
|
|
|
|
|
|||
Property, plant and equipment
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
Investments in associates
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
Assets and liabilities held for sale
|
(30
|
)
|
|
—
|
|
|
(30
|
)
|
|
(30
|
)
|
|
(2
|
)
|
|
(32
|
)
|
|
|
|
|
|
|
|||
Impairment charge recognised up until the date of sale
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
Exchange recycled from other comprehensive income
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
Loss on disposal before taxation
|
(32
|
)
|
|
(1
|
)
|
|
(33
|
)
|
Taxation
|
—
|
|
|
—
|
|
|
—
|
|
Loss on disposal after taxation
|
(32
|
)
|
|
(1
|
)
|
|
(33
|
)
|
|
30 June 2019
|
|
IFRS 16 impact
|
|
1 July 2019
|
|||
|
£ million
|
|
£ million
|
|
£ million
|
|||
Non-current assets
|
|
|
|
|
|
|||
Property, plant and equipment
|
4,455
|
|
|
236
|
|
|
4,691
|
|
Other financial assets
|
404
|
|
|
1
|
|
|
405
|
|
Current assets
|
|
|
|
|
|
|||
Trade and other receivables
|
2,694
|
|
|
(2
|
)
|
|
2,692
|
|
|
|
|
|
|
|
|||
Current liabilities
|
|
|
|
|
|
|||
Other financial liabilities
|
(307
|
)
|
|
(64
|
)
|
|
(371
|
)
|
Trade and other payables
|
(4,202
|
)
|
|
13
|
|
|
(4,189
|
)
|
Non-current liabilities
|
|
|
|
|
|
|||
Other
financial liabilities
|
(124
|
)
|
|
(187
|
)
|
|
(311
|
)
|
Provisions
|
(317
|
)
|
|
3
|
|
|
(314
|
)
|
|
|
North
America
million
|
|
Europe
and
Turkey
million
|
|
Africa
million
|
|
Latin
America
and
Caribbean
million
|
|
Asia
Pacific
million
|
|
Corporate
million
|
|
Total
million
|
|||||||
Volume (equivalent units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2019 reported
|
|
49.4
|
|
|
45.4
|
|
|
33.6
|
|
|
22.4
|
|
|
95.1
|
|
|
—
|
|
|
245.9
|
|
Disposals(v)
|
|
(2.1
|
)
|
|
(0.1
|
)
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.9
|
)
|
2019 adjusted
|
|
47.3
|
|
|
45.3
|
|
|
30.9
|
|
|
22.4
|
|
|
95.1
|
|
|
—
|
|
|
241.0
|
|
Organic movement
|
|
0.1
|
|
|
(5.2
|
)
|
|
(4.0
|
)
|
|
(3.4
|
)
|
|
(14.5
|
)
|
|
—
|
|
|
(27.0
|
)
|
Acquisitions and disposals(v)
|
|
1.0
|
|
|
0.1
|
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.0
|
|
2020 reported
|
|
48.4
|
|
|
40.2
|
|
|
28.8
|
|
|
19.0
|
|
|
80.6
|
|
|
—
|
|
|
217.0
|
|
Organic movement %
|
|
—
|
|
|
(11
|
)
|
|
(13
|
)
|
|
(15
|
)
|
|
(15
|
)
|
|
—
|
|
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
£ million
|
|
Europe
and
Turkey
£ million
|
|
Africa
£ million
|
|
Latin
America
and
Caribbean
£ million
|
|
Asia
Pacific
£ million
|
|
Corporate
£ million
|
|
Total
£ million
|
|||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2019 reported
|
|
5,074
|
|
|
5,132
|
|
|
2,235
|
|
|
1,444
|
|
|
5,356
|
|
|
53
|
|
|
19,294
|
|
Exchange
|
|
(39
|
)
|
|
(28
|
)
|
|
(4
|
)
|
|
3
|
|
|
(8
|
)
|
|
2
|
|
|
(74
|
)
|
Reclassification(iii)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
Disposals(v)
|
|
(106
|
)
|
|
(3
|
)
|
|
(114
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|
(226
|
)
|
2019 adjusted
|
|
4,929
|
|
|
5,101
|
|
|
2,117
|
|
|
1,436
|
|
|
5,346
|
|
|
55
|
|
|
18,984
|
|
Organic movement
|
|
98
|
|
|
(388
|
)
|
|
(261
|
)
|
|
(193
|
)
|
|
(718
|
)
|
|
(16
|
)
|
|
(1,478
|
)
|
Acquisitions and disposals(v)
|
|
42
|
|
|
10
|
|
|
64
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
118
|
|
Exchange
|
|
153
|
|
|
(26
|
)
|
|
(9
|
)
|
|
(59
|
)
|
|
15
|
|
|
(1
|
)
|
|
73
|
|
2020 reported
|
|
5,222
|
|
|
4,697
|
|
|
1,911
|
|
|
1,184
|
|
|
4,645
|
|
|
38
|
|
|
17,697
|
|
Organic movement %
|
|
2
|
|
|
(8
|
)
|
|
(12
|
)
|
|
(13
|
)
|
|
(13
|
)
|
|
(29
|
)
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
£
million
|
|
Europe
and
Turkey
£
million
|
|
Africa
£
million
|
|
Latin
America
and
Caribbean
£
million
|
|
Asia
Pacific
£
million
|
|
Corporate
£
million
|
|
Total
£ million
|
|||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2019 reported
|
|
4,460
|
|
|
2,939
|
|
|
1,597
|
|
|
1,130
|
|
|
2,688
|
|
|
53
|
|
|
12,867
|
|
Exchange(i)
|
|
(34
|
)
|
|
(19
|
)
|
|
(2
|
)
|
|
4
|
|
|
1
|
|
|
2
|
|
|
(48
|
)
|
Reclassification(iii)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
Disposals(v)
|
|
(75
|
)
|
|
(1
|
)
|
|
(91
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(169
|
)
|
2019 adjusted
|
|
4,351
|
|
|
2,919
|
|
|
1,504
|
|
|
1,123
|
|
|
2,688
|
|
|
55
|
|
|
12,640
|
|
Organic movement
|
|
105
|
|
|
(358
|
)
|
|
(200
|
)
|
|
(169
|
)
|
|
(423
|
)
|
|
(16
|
)
|
|
(1,061
|
)
|
Acquisitions and disposals(v)
|
|
32
|
|
|
10
|
|
|
50
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
93
|
|
Exchange(i)
|
|
135
|
|
|
(4
|
)
|
|
(8
|
)
|
|
(46
|
)
|
|
4
|
|
|
(1
|
)
|
|
80
|
|
2020 reported
|
|
4,623
|
|
|
2,567
|
|
|
1,346
|
|
|
908
|
|
|
2,270
|
|
|
38
|
|
|
11,752
|
|
Organic movement %
|
|
2
|
|
|
(12
|
)
|
|
(13
|
)
|
|
(15
|
)
|
|
(16
|
)
|
|
(29
|
)
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2019 reported
|
|
762
|
|
|
490
|
|
|
174
|
|
|
201
|
|
|
412
|
|
|
3
|
|
|
2,042
|
|
Exchange
|
|
(1
|
)
|
|
(11
|
)
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
(12
|
)
|
Reclassification(iii)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
Disposals(v)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
2019 adjusted
|
|
761
|
|
|
479
|
|
|
173
|
|
|
192
|
|
|
411
|
|
|
3
|
|
|
2,019
|
|
Organic movement
|
|
(49
|
)
|
|
(56
|
)
|
|
(14
|
)
|
|
(29
|
)
|
|
(47
|
)
|
|
—
|
|
|
(195
|
)
|
Acquisitions and disposals(v)
|
|
3
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
Exchange
|
|
12
|
|
|
1
|
|
|
—
|
|
|
(8
|
)
|
|
1
|
|
|
3
|
|
|
9
|
|
2020 reported
|
|
727
|
|
|
428
|
|
|
160
|
|
|
155
|
|
|
365
|
|
|
6
|
|
|
1,841
|
|
Organic movement %
|
|
(6
|
)
|
|
(12
|
)
|
|
(8
|
)
|
|
(15
|
)
|
|
(11
|
)
|
|
—
|
|
|
(10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating profit before exceptional items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2019 reported
|
|
1,948
|
|
|
1,014
|
|
|
275
|
|
|
365
|
|
|
703
|
|
|
(189
|
)
|
|
4,116
|
|
Exchange(ii)
|
|
12
|
|
|
(16
|
)
|
|
(4
|
)
|
|
1
|
|
|
8
|
|
|
(1
|
)
|
|
—
|
|
Acquisitions
and Disposals(v)
|
|
(27
|
)
|
|
1
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
2019 adjusted
|
|
1,933
|
|
|
999
|
|
|
268
|
|
|
366
|
|
|
711
|
|
|
(190
|
)
|
|
4,087
|
|
Organic movement
|
|
80
|
|
|
(243
|
)
|
|
(150
|
)
|
|
(107
|
)
|
|
(207
|
)
|
|
38
|
|
|
(589
|
)
|
Acquisitions and disposals(v)
|
|
(1
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
Fair value remeasurement of contingent considerations and equity
option (iv)
|
|
(10
|
)
|
|
(4
|
)
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
Fair value remeasurement of biological assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
Exchange(ii)
|
|
32
|
|
|
9
|
|
|
(17
|
)
|
|
(27
|
)
|
|
(3
|
)
|
|
5
|
|
|
(1
|
)
|
2020 reported
|
|
2,034
|
|
|
757
|
|
|
101
|
|
|
248
|
|
|
501
|
|
|
(147
|
)
|
|
3,494
|
|
Organic movement %
|
|
4
|
|
|
(24
|
)
|
|
(56
|
)
|
|
(29
|
)
|
|
(29
|
)
|
|
20
|
|
|
(14
|
)
|
Organic operating margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2020
|
|
45.2
|
%
|
|
29.5
|
%
|
|
9.0
|
%
|
|
27.1
|
%
|
|
22.3
|
%
|
|
n/a
|
|
30.2
|
%
|
|
2019
|
|
44.4
|
%
|
|
34.2
|
%
|
|
17.8
|
%
|
|
32.6
|
%
|
|
26.5
|
%
|
|
n/a
|
|
32.3
|
%
|
|
Margin movement (bps)
|
|
75
|
|
|
(470
|
)
|
|
(877
|
)
|
|
(544
|
)
|
|
(420
|
)
|
|
n/a
|
|
(212
|
)
|
|
Volume
|
|
Sales
|
|
Net sales
|
|
Marketing
|
|
Operating
profit
|
|||||
|
equ. units million
|
|
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
|||||
Year ended 30 June 2019
|
|
|
|
|
|
|
|
|
|
|||||
Acquisition
|
|
|
|
|
|
|
|
|
|
|||||
Change
in contingent consideration re Casamigos
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
Disposals
|
|
|
|
|
|
|
|
|
|
|||||
Portfolio of 19
brands
|
(2.2
|
)
|
|
(114
|
)
|
|
(79
|
)
|
|
—
|
|
|
(42
|
)
|
South
African ready to drink
|
(0.5
|
)
|
|
(65
|
)
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
South
African cider
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
(1
|
)
|
UNB
|
(2.2
|
)
|
|
(43
|
)
|
|
(43
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(4.9
|
)
|
|
(226
|
)
|
|
(169
|
)
|
|
(1
|
)
|
|
(44
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions
and disposals
|
(4.9
|
)
|
|
(226
|
)
|
|
(169
|
)
|
|
(1
|
)
|
|
(29
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Year ended 30 June 2020
|
|
|
|
|
|
|
|
|
|
|||||
Acquisition
|
|
|
|
|
|
|
|
|
|
|||||
Seedlip
and Aecorn
|
0.1
|
|
|
12
|
|
|
12
|
|
|
7
|
|
|
(8
|
)
|
|
0.1
|
|
|
12
|
|
|
12
|
|
|
7
|
|
|
(8
|
)
|
Disposals
|
|
|
|
|
|
|
|
|
|
|||||
Supply
contracts in respect of the 19 brands sold to Sazerac
|
1.1
|
|
|
42
|
|
|
31
|
|
|
—
|
|
|
3
|
|
South
African ready to drink
|
0.3
|
|
|
33
|
|
|
19
|
|
|
—
|
|
|
—
|
|
UNB
|
1.5
|
|
|
31
|
|
|
31
|
|
|
1
|
|
|
—
|
|
|
2.9
|
|
|
106
|
|
|
81
|
|
|
1
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions and disposals
|
3.0
|
|
|
118
|
|
|
93
|
|
|
8
|
|
|
(5
|
)
|
|
|
2020
|
|
2019
|
||
|
|
£ million
|
|
£
million
|
||
|
|
|
|
|
||
Profit
attributable to equity shareholders of the parent
company
|
|
1,409
|
|
|
3,160
|
|
Exceptional operating and non-operating items
|
|
1,380
|
|
|
(61
|
)
|
Exceptional taxation charges/(benefits)
|
|
—
|
|
|
10
|
|
Tax in respect of exceptional operating and non-operating
items
|
|
(154
|
)
|
|
29
|
|
Exceptional items attributable to non-controlling
interests
|
|
(69
|
)
|
|
26
|
|
|
|
2,566
|
|
|
3,164
|
|
|
|
|
|
|
||
Weighted average number of shares
|
|
million
|
|
million
|
||
Shares
in issue excluding own shares
|
|
2,346
|
|
|
2,418
|
|
Dilutive
potential ordinary shares
|
|
8
|
|
|
10
|
|
|
|
2,354
|
|
|
2,428
|
|
|
|
|
|
|
||
|
|
pence
|
|
pence
|
||
Basic earnings per share before exceptional items
|
|
109.4
|
|
130.8
|
||
|
|
|
|
|
||
Diluted earnings per share before exceptional items
|
|
109.0
|
|
130.3
|
|
2020
|
|
2019
|
||
|
£ million
|
|
£ million
|
||
|
|
|
|
||
Net cash inflow from operating activities
|
2,320
|
|
|
3,248
|
|
Disposal
of property, plant and equipment and computer software
|
14
|
|
|
32
|
|
Purchase
of property, plant and equipment and computer software
|
(700
|
)
|
|
(671
|
)
|
Movements
in loans and other investments
|
—
|
|
|
(1
|
)
|
Free cash flow
|
1,634
|
|
|
2,608
|
|
|
2020
|
|
2019
|
||
|
£ million
|
|
£
million
|
||
|
|
|
|
||
Operating
profit
|
2,137
|
|
|
4,042
|
|
Exceptional
operating items
|
1,357
|
|
|
74
|
|
Profit
before exceptional operating items attributable to non-controlling
interests
|
(114
|
)
|
|
(151
|
)
|
Share
of after tax results of associates and joint ventures
|
282
|
|
|
312
|
|
Tax
at the tax rate before exceptional items of 21.7% (2019 –
20.6%)
|
(795
|
)
|
|
(881
|
)
|
|
2,867
|
|
|
3,396
|
|
|
|
|
|
||
Average
net assets (excluding net post employment
assets/liabilities)
|
9,063
|
|
|
10,847
|
|
Average
non-controlling interests
|
(1,723
|
)
|
|
(1,776
|
)
|
Average
net borrowings
|
12,551
|
|
|
10,240
|
|
Average
integration and restructuring costs (net of tax)
|
1,639
|
|
|
1,639
|
|
Goodwill
at 1 July 2004
|
1,562
|
|
|
1,562
|
|
Average
total invested capital
|
23,092
|
|
|
22,512
|
|
|
|
|
|
||
Return
on average total invested capital
|
12.4%
|
|
15.1%
|
|
2020
|
|
2019
|
||
|
£ million
|
|
£
million
|
||
|
|
|
|
||
Borrowings due within one year
|
1,995
|
|
|
1,959
|
|
Borrowings due after one year
|
14,790
|
|
|
10,596
|
|
Fair value of foreign currency derivatives and interest rate
hedging instruments
|
(686
|
)
|
|
(474
|
)
|
Lease liabilities
|
470
|
|
|
128
|
|
Less: Cash and cash equivalents
|
(3,323
|
)
|
|
(932
|
)
|
Net borrowings
|
13,246
|
|
|
11,277
|
|
Post employment benefit liabilities before tax
|
749
|
|
|
846
|
|
Adjusted net borrowings
|
13,995
|
|
|
12,123
|
|
|
|
|
|
||
|
|
|
|
||
Operating profit
|
2,137
|
|
|
4,042
|
|
Depreciation, amortisation and impairment (excluding exceptional
items)
|
494
|
|
|
374
|
|
Share of after tax results of associates and joint
ventures
|
282
|
|
|
312
|
|
Exceptional impairment
|
1,345
|
|
|
—
|
|
Non-operating items
|
(23
|
)
|
|
144
|
|
EBITDA
|
4,235
|
|
|
4,872
|
|
Exceptional operating items (excluding impairment)
|
12
|
|
|
74
|
|
Non-operating items
|
23
|
|
|
(144
|
)
|
Adjusted EBITDA
|
4,270
|
|
|
4,802
|
|
|
|
|
|
||
|
|
|
|
||
Adjusted net borrowings to adjusted EBITDA
|
3.3
|
|
|
2.5
|
|
|
2020
|
|
2019
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Tax
before exceptional items (a)
|
743
|
|
|
859
|
|
Tax in
respect of exceptional items
|
(154
|
)
|
|
29
|
|
Exceptional tax charge/(credit)
|
—
|
|
|
10
|
|
Taxation
on profit (b)
|
589
|
|
|
898
|
|
|
|
|
|
||
Profit before taxation and exceptional items (c)
|
3,423
|
|
|
4,174
|
|
Non-operating
items
|
(23
|
)
|
|
144
|
|
Exceptional finance charges
|
—
|
|
|
(9
|
)
|
Exceptional operating items
|
(1,357
|
)
|
|
(74
|
)
|
Profit
before taxation (d)
|
2,043
|
|
|
4,235
|
|
|
|
|
|
||
Tax rate before exceptional items (a/c)
|
21.7%
|
|
|
20.6%
|
|
Tax rate after exceptional items (b/d)
|
28.8%
|
|
|
21.2%
|
|
From the UK:
|
+44
(0)330 336 9105
|
From the UK (free call):
|
0800
358 6377
|
From the USA:
|
+1 323 794 2093
|
From the USA (free call):
|
866 548
4713
|
From the UK:
|
+44 (0)20 7660 0134
|
From the UK (free call):
|
0808
101 1153
|
From the USA:
|
+1 719
457 0820
|
From the USA (free call):
|
888 203 1112
|
Investor enquiries to:
|
Vinod Rao
|
+44 (0)
7834 805 733
|
|
Lucinda Baker
|
+44 (0)
7974 375 550
|
|
|
investor.relations@diageo.com
|
|
|
|
Media enquiries to:
|
Jessica Rouleau
|
+44 (0)
7925 642 561
|
|
Rebecca Perry
|
+44 (0)
7590 809 101
|
|
Dominic Redfearn
|
+44 (0)
7971 977 759
|
|
Francesca Olivieri
|
+44 (0)
7523 930 130
|
|
|
press@diageo.com
|
|
Diageo plc
|
|
(Registrant)
|
|
|
Date:
04 August 2020
|
|
|
|
|
By:___/s/
James Edmunds
|
|
|
|
James Edmunds
|
|
Deputy Company Secretary
|
|