DEO - Diageo PLC (DEO) Q2 2024 Earnings Call Transcript
2024-01-30 16:14:03 ET
Diageo PLC (DEO)
Q2 2024 Earnings Conference Call
January 30, 2024, 12:45 PM ET
Company Participants
Debra Crew - CEO
Lavanya Chandrashekar - CFO
Conference Call Participants
Presentation
Debra Crew
Good morning, everyone. Thank you for joining our results presentation for the first half of fiscal '24.
As we shared in November, we expected that the first half of fiscal '24 was going to see slower growth than the second half of fiscal '23, due to materially weaker performance in LAC, our Latin American Region, which is nearly 10% of Diageo's net sales value. We ended the half in line with our November trading update. But let me be clear, we are not satisfied with these results.
Today, I will share my reflections on our performance for the half, including an update on LAC. Lavanya will then discuss our results in more detail before I return to discuss our near-term outlook.
The group's organic net sales declined 0.6% in the first half of fiscal '24, and organic operating margin declined by 167 basis points. Excluding LAC, organic net sales grew 2.5%, driven by good growth in Europe, Asia Pacific and Africa. And while North America declined versus the prior year, we did deliver sequential improvement period-on-period, as our actions in the region began to show an early impact. Organic operating margin declined 53 basis points, excluding LAC, driven entirely by increased marketing investment....
Diageo PLC (DEO) Q2 2024 Earnings Call Transcript