London, Aug. 1, 2023: Diageo plc, the alcoholic beverage company, said its profit attributable to equity shareholders of its parent company rose by 3.73 billion pounds (4.8 billion dollars) or 164.4 pence.
This was for the fiscal year ended on June 30.
The 2022 profits were 3.25 billion pounds or 139.7 pence per share.
It said that the earnings per basic share before exceptional items increased by 7.6 per cent to 163.5 pence from the prior year.
Profit before taxation was 4.74 billion pounds up from 4.39 billion pounds in the previous year.
Net sales for the year grew 10.7 per cent to 17.11 billion pounds from last year, driven by strong organic growth and favourable foreign exchange impacts.
Organic net sales growth was 6.5 per cent. Reported volume declined by 7.4 per cent, and organic volume declined by 0.8 per cent.
The company said it continued to expect to deliver its medium-term guidance of consistent organic net sales growth in the range of 5 per cent to 7 per cent.
Sustainable organic operating profit growth was in the range of 6 per cent to 9 per cent.
Looking ahead for the first half of fiscal 2024, the company expects gradual improvement from the second half of fiscal 23.
The company expected its organic net sales growth to accelerate in the second half of fiscal year 2024, given the softer comparator.
Starting in fiscal 24, in line with reporting requirements the functional currency of Diageo plc has changed from sterling to the U.S. dollar.
Diageo had also changed its presentation currency to U.S. dollar, the company said.
The company announced a new return of capital program of up to 1 billion dollars.
According to the company, the recommended final dividend for the year ended 30 June 30.
This would be put to the shareholders for approval at the annual general meeting is 49.17 pence, an increase of 5 per cent on the prior year final dividend.
This would bring the full year dividend to 80.00 pence per share, an increase of 5 per cent on the prior year.
The final dividend, once approved by shareholders, will be paid to shareholders on Oct. 12 and payment to U.S. ADR holders would be made on Oct. 17.