Alcoholic beverage company Diageo plc. (DGE.L,DEO) reported that its profit attributable to equity shareholders of the parent company for the year ended 30 June 2023 increased to 3.73 billion pounds or 164.4 pence per share from 3.25 billion pounds or 139.7 pence per share in the previous year.
Earnings per basic share before exceptional items increased 7.6% to 163.5 pence from the prior year.
Profit before taxation was 4.74 billion pounds up from 4.39 billion pounds in the prior year.
Net sales for the year grew 10.7% to 17.11 billion pounds from last year, driven by strong organic growth and favorable foreign exchange impacts. Organic net sales growth were 6.5%.
Reported volume declined by 7.4%, and organic volume declined by 0.8%.
The company said it continues to expect to deliver its medium-term guidance of consistent organic net sales growth in the range of 5% to 7% and sustainable organic operating profit growth in the range of 6% to 9%.
Looking ahead for the first half of fiscal 2024, the company expects gradual improvement from the second half of fiscal 23. The company expects 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 US dollar. Diageo has also changed its presentation currency to US dollar, the company said.
The company announced a new return of capital program of up to $1 billion.
According to the company, the recommended final dividend for the year ended 30 June 2023, to be put to the shareholders for approval at the Annual General Meeting is 49.17 pence, an increase of 5% on the prior year final dividend. This would bring the full year dividend to 80.00 pence per share, an increase of 5% on the prior year.
The final dividend, once approved by shareholders, will be paid to shareholders on 12 October 2023 and payment to US ADR holders will be made on 17 October 2023.
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