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Across the multi-year record, Diageo combines historically substantial operating margins with recurring free cash generation and relatively modest capital spending. Exceptional impairments and restructuring can, however, materially distort reported earnings.
The latest year brought softer sales and sharply lower reported profit, largely reflecting exceptional impairment and restructuring charges, while operating profit before exceptional items improved. This points to a meaningful reported-earnings disruption, not clear evidence that the underlying margin and cash-generating model has changed.
Whether operating profit before exceptional items holds up as restructuring charges give way to the planned savings.
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| 12.1B | 12.2B | 12.9B | 11.8B | 16.4B | 20.9B | 20.6B | 20.3B | 20.2B | ||
| (4.7B) | (4.6B) | (4.9B) | (4.7B) | (6.5B) | (8.1B) | (8.3B) | (8.1B) | (8.1B) | (8B) | |
| 7.4B | 7.5B | 8B | 7.1B | 9.9B | 12.8B | 12.3B | 12.2B | 12.2B | 11.7B | |
| (3.8B) | (3.7B) | (3.9B) | (3.5B) | (5.1B) | (6.3B) | (6B) | (6.3B) | (7.8B) | (8.5B) | |
| (1.8B) | (1.9B) | (2B) | (1.8B) | (2.8B) | (3.7B) | (3.7B) | (3.7B) | (3.7B) | (3.2B) | |
| (2B) | (1.8B) | (1.8B) | (1.7B) | (2.3B) | (2.7B) | (2.3B) | (2.6B) | (4.2B) | (5.3B) | |
| 3.6B | 3.8B | 4.1B | 3.6B | 4.8B | 6.5B | 6.3B | 5.9B | 4.3B | ||
| 15m | 86m | 74m | (45m) | (25.7m) | 83.9m | (260m) | (451m) | (328m) | (344m) | |
| 571.6m | 531.5m | 618.4m | 661.1m | 625.5m | 631.4m | 907m | 1.1B | 761m | 793m | |
| (22m) | (128m) | 61m | (1.5B) | (1.3m) | (594.2m) | (402m) | (14m) | (162m) | (1m) | |
| — | — | — | — | — | — | — | — | — | 3m | |
| (35m) | (37m) | (16m) | (26m) | (24.4m) | (44.7m) | (9m) | (20m) | (308m) | (250m) | |
| 3.6B | 3.7B | 4.2B | 2B | 4.8B | 5.9B | 5.6B | 5.5B | 3.5B | 2.6B | |
| (732m) | (950m) | (898m) | (589m) | (1.2B) | (1.4B) | (1.2B) | (1.3B) | (999m) | (606m) | |
| 2.8B | 2.8B | 3.3B | 1.5B | 3.6B | 4.5B | 4.5B | 4.2B | 2.5B | 2B | |
| (110m) | (122m) | (177m) | (45m) | (178.7m) | (120.5m) | (34m) | (296m) | (184m) | (221m) | |
| 2.7B | 3B | 3.2B | 1.4B | 3.4B | 4.4B | 4.4B | 3.9B | 2.4B | ||
| 1.05 | 1.21 | 1.30 | 0.60 | 1.46 | 1.89 | 1.96 | 1.73 | 1.06 |
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Stock intrinsic value is the real worth of a company's stock, based on its financial health and performance.
Instead of looking at the stock's current market price, which can change due to people's opinions and emotions, intrinsic value helps us understand if a stock is truly a good deal or not.
By focusing on the company's actual financial strength, like its earnings and debts, we can make better decisions about which stocks to buy and when.
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