27th Jan 2005 14:43
Diageo PLC27 January 2005 Press Release 27 January 2005 Diageo's geographic alignment Diageo announced on 8 September 2004 a new geographic organisation comprisingNorth America, Europe and International. The composition of the new geographicaloperating units is as follows: Diageo Europe consists of the following regions and countries: • Great Britain, Ireland • Northern Europe - the Nordics, Germany, France, Benelux, Austria, Switzerland and the Baltics • Southern and Eastern Europe - Greece, Turkey, Italy, Poland, Hungary, Czech Republic, Slovakia, the former Yugoslavia, Cyprus, Malta, Israel, Romania, Bulgaria, Albania and the former Soviet Union excluding the Baltics • Iberia - Spain, Portugal and the Canary Islands Diageo International consists of the following regions and countries: • Latin America and the Caribbean • Asian markets including the People's Republic of China • Africa • Middle East and India • Australia and New Zealand • Global Duty Free There has been no change to the composition of the Diageo North Americaoperating unit although the reported and organic results have changed as aresult of new disclosure of corporate revenues and costs. For the year ending 30 June 2005 and going forward, Diageo will presentseparately certain corporate revenues and costs. These corporate revenues andcosts are in respect of central costs including finance, human resources andlegal as well as certain information system, service centre, facilities andemployee costs that are not directly allocated to the geographical operatingunits. Additionally, they also include the revenues and costs related to rentsreceivable in respect of properties not used by Diageo in the manufacture, saleor distribution of premium drinks and the results of Gleneagles Hotel. Results for the years ended 30 June 2004 and 2003 and the six-month period ended31 December 2003 reflecting the new organisation are shown below. Amounts in £ millions except volume which is equivalent unit cases millionsNorth America Reported movement Organic movement Year ended June 30 2004 2003 % %Volume 44.3 43.9 1 3Turnover 2,641 2,742 (4) 9Net sales (after deducting excise duties) 2,220 2,283 (3) 10Marketing 359 369 (3) 9Operating profit before exceptional items 757 773 (2) 12Europe Reported movement Organic movement Year ended June 30 2004 2003 % %Volume 40.9 40.4 1 2Turnover 3,847 3,746 3 1Net sales (after deducting excise duties) 2,535 2,500 1 (1)Marketing 435 434 0 (2)Operating profit before exceptional items 666 646 3 0 International Reported movement Organic movement Year ended June 30 2004 2003 % %Volume 36.9 35.0 5 7Turnover 2,340 2,252 4 11Net sales (after deducting excise duties) 1,864 1,791 4 12Marketing 245 223 10 16Operating profit before exceptional items 646 636 2 10Corporate Year ended June 30 Reported movement Organic movement 2004 2003 % %Turnover 63 62 2 3Net sales (after deducting excise duties) 63 62 2 3Operating profit / (loss) before exceptional (158) (153) (3) (8)items Total excluding discontinued operations Year ended June 30 Reported movement Organic movement 2004 2003 % %Volume 122.1 119.3 2 4Turnover 8,891 8,802 1 6Net sales (after deducting excise duties) 6,682 6,636 1 6Marketing 1,039 1,026 1 6Operating profit before exceptional items 1,911 1,902 0 7 Six-Month period ended December 31, 2003 North America Volume 23.4Turnover 1,457Net sales (after deducting excise duties) 1,228Marketing 202Operating profit before exceptional items 453Europe Volume 23.5Turnover 2,247Net sales (after deducting excise duties) 1,481Marketing 268Operating profit before exceptional items 432International Volume 20.0Turnover 1,327Net sales (after deducting excise duties) 1,057Marketing 142Operating profit before exceptional items 374Corporate Turnover 29Net sales (after deducting excise duties) 29Operating profit / (loss) before exceptional items (78)Total excluding discontinued operations Volume 66.9Turnover 5,060Net sales (after deducting excise duties) 3,795Marketing 612Operating profit before exceptional items 1,181 Organic movement, net sales (after deducting excise duties) and operating profitbefore exceptional items are measures not specifically used in the consolidatedfinancial statements themselves (non-GAAP measures). The group's managementbelieve these measures provide valuable additional information for users of thefinancial statements in understanding the group's performance, since themeasures focus on that element of the core brand portfolio that is common acrossperiods and provide information on those elements of performance which localmanagers are most directly able to influence. However, whilst these measures areimportant in the management of the business, they should not be viewed asreplacements for, but rather as complementary to, the comparable GAAP measuressuch as turnover and reported (rather than organic) movements in individualprofit and loss account captions. For further explanation of these non-GAAPmeasures and how they are calculated, please see our Annual Report 2004. --ENDS-- Investor enquiries: Catherine James +44 (0)20 7927 5272 or [email protected] Michael Mulhall +44(0)20 7927 4471 or [email protected] Media enquiries: Jane Richardson +44 (0)7803 856200 or [email protected] About Diageo plc Diageo is the world's leading premium drinks business. With its global vision,and local marketing focus, Diageo brings to consumers an outstanding collectionof beverage alcohol brands across the spirits, wine and beer categoriesincluding Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, CaptainMorgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines. Diageotrades in some 180 markets around the world and is listed on both the New YorkStock Exchange (DEO) and the London Stock Exchange (DGE). For more informationabout Diageo, its people, brands and performance, visit us at www.diageo.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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