Preliminary Q4 2024 Diageo PLC Earnings Call (Q&A) Transcript
Key Points
- Diageo PLC (DEO) achieved record productivity savings of nearly $700 million.
- The company generated $2.6 billion in free cash flow while continuing to invest for long-term growth.
- Diageo PLC (DEO) gained or held market share in over 75% of its net sales value in measured markets, including the US.
- The company saw resilient growth in Africa, Asia Pacific, and Europe, offsetting declines in North America.
- Guinness brand experienced strong growth, driven by innovation and increased consumer engagement.
- Group organic net sales declined by 0.6%, primarily due to weaker performance in the Latin America and Caribbean (LAC) region.
- The consumer environment remains challenging, with expectations of continued volatility into fiscal '25.
- North America experienced a decline in sales due to a cautious consumer environment and retailer inventory adjustments.
- There is significant competitive activity and down trading in key markets like Mexico, impacting market share.
- The company faces ongoing pressure on operating margins due to strategic investments, salary inflation, and top-line pressure.
Good morning, and welcome to Diageo's F24 Preliminary Results Q&A conference. Your call today will be hosted by Debra, Diageo's CEO; and Lavanya, Diageo's CFO. This conference is being recorded. (Operator Instructions)
We are now ready to start the call. Debra, please go ahead.
Good morning, and thank you for joining our preliminary results call for fiscal '24. I hope you've had a chance to read our press release and watch our presentation on diageo.com. Fiscal '24 was a challenging year for both our industry and Diageo as we navigated a volatile operating environment across the globe. Group organic net sales declined 0.6% and the main driver was materially weaker performance in LAC, our Latin America and Caribbean region.
For perspective, if you exclude LAC, organic net sales grew plus 1.8%, driven by resilient growth in Africa, Asia Pacific and Europe regions. This offset the decline in North America, which was attributable to a cautious consumer environment, retailer
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