Diageo has approved a share buyback programme, as the operating profits at the drinks giant increased 3.7% year-on-year to £3.7 billion (€4.2 billion.)
Reported sales at the group were £12.2 billion (€13.7 billion) for the 12 month period, up 0.9% year-on-year, as organic growth was partially offset by adverse exchange movements, according to its 2018 Preliminary Results, year ended 30 June 2018.
“Diageo has delivered another year of strong, consistent performance. Organic volume and net sales growth is broad based across regions and categories. We have expanded organic operating margin while increasing investment behind our brands ahead of organic net sales growth,” said Ivan Menezes, chief executive, Diageo.
“These results reflect the high performance culture we have created in Diageo, the ongoing rigorous execution of our strategy, our focus on the consumer and our ability to move swiftly on trends and insights.”
The statement outlined that on 26 July the Board approved a share buyback programme to return up to £2.0 billion to shareholders during the year ending 30 June 2019.
“During the year we returned £1.5 billion to shareholders through a share buyback. We have delivered another year of strong cash flow generation in F18. Consequently, the Board has approved an additional share buyback programme of up to £2.0 billion during F19.”
Menezes said that the changes that the company has made in the business, and in the shifts in culture that it continues to drive, ensures that the group is 'well placed to capture opportunities and deliver sustained growth'.
“Our financial performance expectations are unchanged and we expect to continue to invest in the business to deliver our mid-term guidance of consistent mid-single digit organic net sales growth and 175bps of organic operating margin expansion for the three years ending 30 June 2019.”
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.