Diageo Capital reports modest gain in net finance income

LONDON - Diageo (LON:DGE) Capital plc, the treasury arm of Diageo plc, reported a slight increase in its net finance income for the six months ending December 31, 2024. The company, which specializes in treasury, risk, and cash management for Diageo plc and its subsidiaries, recorded net finance income of $81 million, up $4 million from the same period in the previous year.

During the period, Diageo Capital’s external borrowings decreased by $1,034 million to $8,504 million, primarily due to the repayment of two bonds. The company’s profit transferred to reserves was $85 million, compared to $63 million in the prior year, while it experienced a minor other comprehensive loss of $2 million.

The company is part of Diageo plc’s treasury operations, and its performance is measured at the group level. Diageo Capital does not propose the payment of an interim dividend to shareholders for the reported six months.

As for the company’s future outlook, the directors do not anticipate any changes in its activities for the remaining six months of the financial year. The company expects to continue generating profit and maintain a positive net asset position, supported by financial backing from the parent company, Diageo plc.

The report also highlighted principal risks, including interest rate risk, geopolitical and macroeconomic volatility, cyber and IT resilience, and climate risk. However, the potential impact of these risks on the company is considered to be very limited due to its role within the group’s broader financial operations.

Diageo Capital’s financial statements have not been audited or reviewed by auditors. The information provided in this article is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.