16th Oct 2007 11:18
Diageo PLC16 October 2007 16 October 2007 Interim management statement for the three months ended 30 September 2007 Diageo maintains full year guidance for 9% organic operating profit growth. In the three month period ended 30 September 2007 Diageo's organic net salesgrowth was 5%. However, the combined impact of two changes in the quarter hasreduced organic net sales growth by over one percentage point. Firstly, theincremental net sales arising from price increases made in Venezuela to reflectthe movement in the parallel exchange rate are now excluded when calculatingorganic net sales growth. In addition, as previously announced, the requiredchange in Diageo's route to market in Korea has also impacted organic net salesgrowth. Diageo is now selling to a third party distributor at a net sales valueper case which is lower than last year as the distributor is responsible for themarketing and distribution costs previously incurred directly by Diageo inKorea. The anticipated full year operating profit impact of both these changeswas included in the fiscal 2008 organic operating profit growth guidance of 9%which Diageo gave at the time of its 2007 preliminary results in August 2007. There has been no material change in the financial position of the group duringthe period. £283 million of share repurchases as part of the buy back programmewere the principal reason for the movement in net assets from £4.2 billion at 30June 2007 to £4.1 billion at 30 September 2007. Paul Walsh, Chief Executive of Diageo commented: 'At our results presentation in August I said that Diageo's strengths are thequality and diversity of our brands, our routes to market and our global reach.Trading since the beginning of the year has again demonstrated these strengths.The second quarter is a key selling period for us and although we continue towatch for any impact that recent financial market volatility may have on broadertrading conditions we are maintaining our guidance for 9% organic operatingprofit growth for the current fiscal year.' ENDS Explanatory notes The introduction of the EU Transparency Directive in 2006 required companieswhose securities are admitted to trading on a regulated market in the EU toissue interim management statements for financial years beginning after 20January 2007. Diageo is therefore required to publish interim managementstatements from the financial year beginning 1 July 2007. At the time of thepreliminary results on 30 August 2007 Diageo announced the following timetablefor issuing interim management statements: At the AGM on 16 October 2007 At the interim results in February 2008 In May 2008 At the preliminary results in August 2008 For further information: Investor enquiries : Investor relations + 44 (0) 20 7927 4267 Media enquiries: Isabelle Thomas + 44 (0) 20 7927 5967 Forward-looking statements This document contains certain forward-looking statements within the meaning ofSection 27A of the US Securities Act of 1933 and Section 21E of the USSecurities Exchange Act of 1934. These forward-looking statements can beidentified by the fact that they do not relate only to historical or currentfacts. In particular, all statements that express forecasts, expectations andprojections with respect to future matters, including trends in results ofoperations, margins, growth rates, overall market trends, the impact of interestor exchange rates, the availability of financing to Diageo, anticipated costsavings or synergies and the completion of Diageo's strategic transactions, areforward-looking statements. By their nature, forward-looking statements involverisk and uncertainty because they relate to events and depend on circumstancesthat will occur in the future. There are a number of factors that could causeactual results and developments to differ materially from those expressed orimplied by these forward-looking statements, including factors that are outsideDiageo's control. All oral and written forward-looking statements made on orafter the date of this document and attributable to Diageo are expresslyqualified in their entirety by the 'risk factors' contained in Diageo's annualreport on Form 20-F for the year ended 30 June 2007 filed with the US Securitiesand Exchange Commission (SEC). Any forward-looking statements made by or onbehalf of Diageo speak only as of the date they are made. Diageo does notundertake to update forward-looking statements to reflect any changes inDiageo's expectations or any changes in events, conditions or circumstances onwhich any such statement is based. The reader should, however, consult anyadditional disclosures that Diageo may make in documents it files with the SEC.All readers, wherever based, should take note of these disclosures. Notes to Editor 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, Jose Cuervo,Captain Morgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyardswines. Diageo trades in some 180 countries around the world and is listed onboth the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). Formore information about Diageo, its people, brands and performance, visit us atwww.diageo.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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