Every Wednesday for the next few weeks, we will feature the work of our friend Christophe Larouche. Christophe is currently doing his MBA and, thankfully, thought that it would be interesting to do Financial Statements of our beloved ”Where-Did-My-Money- Go -This-Mont…Oh-Wait…” Corporations !
So here they are !
Highlights from Financial Statements of Industry Leaders
DIAGEO
(ANNUAL REPORT 2018)
Diageo is a global leader in beverage alcohol with global giant brands like Johnny Walker, Smirnoff, Baileys, Captain Morgan, Tanqueray and Guinness.
Scotch is 25% of total £ sales; Beer is 16%; Vodka is 11%
Scotch is by far the largest contributor to both the top and bottom lines.
Total Sales (Top Line): £ 18.4 G
Net Profit (Bottom Line): £ 3.1 G
When Diageo sells a bottle to your retailer for 100$, here’s what the price pays for:
-Excise Duties from Country of Production: $34.01
-Production Costs: 25,14$
-Marketing: 10.21$
-Other Administrative Expenses: $9,92
-Diageo’s Operating Profit: $20.72
Your retailer then adds your country’s import duties, local sales tax and their profit margin to that $100.
History of purchases:
The most they’ve ever paid to acquire a brand was £ 1.1 G for Crown Royal.
Johnnie Walker was acquired for £ 625 MM.
If you’re curious for more, let me know! ☺
Christophe