Diageo plc: Will Its Investments in Technology & Data Analytics Pay Off?

Diageo had experienced a challenging first half to the fiscal year of 2024. The company’s organic net sales declined by 0.6% due to an uneven consumer environment and inventory challenges in Latin American and Caribbean markets. Nonetheless, following a strong performance in Europe, Asia Pacific and Africa (excluding LAC), organic net sales grew 2.5%. The company generated strong free cash flow of $1.5 billion, reflecting robust working capital management. A further $335 million of productivity cost savings was unlocked across cost of goods, marketing and overheads. The guest also mentioned a 5% increase in the dividend, a sign of returning shareholder value.