Interim Management Statement

RNS Number : 8216R

Diageo PLC

07 May 2009

 



7 May 2009                            

Interim management statement for the nine months 

ended 31 March 2009

Diageo maintains fiscal 2009 full year guidance for organic operating profit growth in the range of 4% to 6%

In the nine months ended 31 March 2009 net sales were flat against the comparable period on an organic basis. In the quarter ended 31 March 2009 net sales declined by 7% on the same basis, driven primarily by the planned stock reductions in Diageo's US spirits and wine distributors where stock at 31 March 2009 was approximately one million cases lower than at 31 December 2008.  

On a reported basis net sales grew by 16% in the nine months ended 31 March 2009 and by 11% in the quarter ended 31 March 2009, against the comparable prior period in each case. Growth was mainly driven by the impact of exchange rates movements since the comparable period. 

The only material change in the financial position of the group was the liability in respect of the interim dividend. Net assets were £4,192 million at 31 March 2009, having been £4,616 million at 31 December 2008. 

Paul Walsh, Chief Executive of Diageo commented:

'As we anticipated trading in markets around the world has weakened in the second half of the fiscal year. In particular there has been a significant decline in the Russian market from the beginning of January and the Global Travel Retail business continues to be adversely affected by the economic conditions. However, through our actions, including the reduction in trade stock levels which we orchestrated across many markets in the first half and delivered in our US spirits and wine channel in the third quarter, our focus on marketing efficiency and the implementation of our restructuring programme, we are taking the steps necessary to put ourselves in a position to emerge from this global downturn as an even stronger business.

'Despite this more challenging trading environment we continue to forecast organic operating profit growth for the year ended 30 June 2009 in the range of 4% to 6%. Continued positive exchange rate impacts and the lower tax rate mean that growth in reported eps will be double digit.'  

-ends-

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Forward-looking statements

This document contains 'forward-looking statements'. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward looking statements include all statements that express forecasts, expectations, plans, outlook and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability or cost of financing to Diageo, anticipated cost savings or synergies and the completion of Diageo's strategic transactions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including factors that are outside Diageo's control. All oral and written forward-looking statements made on or after the date of this document and attributable to Diageo are expressly qualified in their entirety by the 'risk factors' contained in Diageo's annual report on Form 20-F for the year ended 30 June 2008 filed with the US Securities and Exchange Commission (SEC). Any forward-looking statements made by or on behalf of Diageo speak only as of the date they are made. Diageo does not undertake to update forward-looking statements to reflect any changes in Diageo's expectations or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Diageo may make in documents it publishes and/or files with the SEC. All readers, wherever located, should take note of these disclosures. The information in this document does not constitute an offer to sell or an invitation to buy shares in Diageo plc or any invitation or inducement to engage in any other investment activities. Past performance cannot be relied upon as a guide to future performance.

 

END

 

 

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