Analysis of the Financial and Non-Financial Key Measures of Diageo
Financial Key Measures
Sales Volume. Since 2017, the firm’s sales volume has dipped slightly for the last year from 242.2m in 2017 to 240.4m in 2018. In percentage, it is a 0.7% drop in reported movement. Lesser sales are indicative of increased competition or decreases in market demand.
Operating Profit. It increased from £ 3,559m in 2017 to £ 3,691m in 2018. This increases interest since it occurs against the backdrop of declining sales volume. This means that the current pricing model, which gives the firm a higher profit margin, could have caused the sales volume to decrease.
Earnings Per Share (EPS). It rose from 106.0p in 2017 to 121.7p in 2018. It means that the value of the firm to the shareholders improved.
Net Sales. They increased from £12,050m in 2017 to £12,163m in 2018. This means that, taking into account taxes, Diageo generated revenues that exceeded costs.
Net Cash from Operating Activities. It reduced from £3,132m in 2017 to £3,084m in 2018. Such a decrease implies that the efficiency of generating revenues from the usual day-day activities of the company has reduced.
Non-Financial Key Measures
Alcohol in Society. The number of drinking programs decreased from 264 in 2017 to 225 in 2018, implying that the firm is slowly running from taking its corporate social responsibility roles.
Health and Safety. Lost time accident frequency has decreased from 1.14 in 2017 to 1.00 in 2018, meaning that the firm’s CSR is working well in reducing the harm resulting from consumers’ intake of its products.
Water Efficiency. It improved from 4.98I/l in 2017 to 4.94I/l in 2018, meaning the company is moving towards sustainable water usage in its alcohol production activities.
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