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Diageo FY Pre-tax Profit Rises; Board Approves Share Buyback - Quick Facts

Diageo PLC (DGE.L,DEO) reported pre-tax profit of 3.74 billion pounds for the fiscal year ended 30 June 2018, up from 3.56 billion pounds in the prior year.

Profit to equity shareholders of the parent company increased 14 percent to 3.02 billion pounds from 2.66 billion pounds last year. Basic earnings per share rose to 121.7 pence from 106.0 pence last year.

Operating profit before exceptional items grew 8 percent to 3.82 billion pounds from 3.60 billion pounds in the previous year. Earnings per share before exceptional items were 118.6 pence, compared to 108.5 pence a year ago.

Net sales for the year rose 1 percent to 12.16 billion pounds from 12.05 billion pounds last year. Organic growth was 5 percent.

The company's board has approved a share buyback programme to return up to 2.0 billion pounds to shareholders during the year ending 30 June 2019.

The board also recommended a final dividend increase of 5 percent, bringing the full year dividend to 65.3 pence per share.

Looking ahead, Diageo said its financial performance expectations are unchanged.

The company expects to continue to invest in the business to deliver its medium-term guidance of consistent mid-single digit organic net sales growth and 175 basis points of organic operating margin improvement in the three years ending 30 June 2019.

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