Diageo Fiscal Year Pretax Profit Declines - Quick Facts

(RTTNews) - Diageo PLC (DGE.L, DEO) reported pretax profit of 2.86 billion pounds for the year ended 30 June 2016, down from 2.93 billion pounds in the prior year.

Profit to equity shareholders of the parent company declined 6 percent to 2.24 billion pounds from 2.38 billion pounds last year. Basic earnings per share decreased to 89.5 pence from 95.0 pence last year.

Operating profit before exceptional items decreased 2 percent to 3.01 billion pounds from 3.07 billion pounds in the previous year. However, earnings per share before exceptionals was 89.4 pence, compared to 88.8 pence a year ago.

Net sales for the year declined 3 percent to 10.49 billion pounds from 10.81 billion last year, as organic growth in each region and acquisitions were more than offset by adverse exchange and disposals. Organic growth was 3 percent.

Ivan Menezes, Chief Executive of Diageo said, "These results position us well to deliver a stronger performance in F17. We are confident of achieving our objective of mid-single digit top line growth, and in the three years ending F19 delivering 100bps of organic operating margin improvement."

The directors of Diageo recommended a final dividend of 36.6 pence per share, an increase of 5 percent from the prior year. The full dividend will therefore be 59.2 pence per share.

Subject to approval by shareholders, the final dividend will be paid on 6 October 2016 to shareholders on the register on 12 August 2016.