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DIAGEO Interim results , six months ended 31 December 2020 28 January 2021 Encouraging return to growth , good cash generation and increased dividend Financial highlights • • • Reported net sales ( £ 6.9 billion ) down 4.5 % , as organic growth of 1.0 % was more than offset by unfavourable exchange . Reported operating profit ( £ 2.2 billion ) declined 8.3 % , driven by unfavourable exchange and a decline in organic operating profit . Organic net sales up 1.0 % , despite a significant impact from Travel Retail and on - trade restrictions . North America was up 12.3 % , offsetting declines in other regions , except for Africa which was broadly flat . North America growth was driven by resilient consumer demand , share growth of total beverage alcohol , positive category mix and the replenishment of stock levels by distributors and retailers . Organic operating profit down 3.4 % , driven by channel and category mix . Productivity benefits from everyday cost efficiencies largely offset cost of goods sold inflation . Net cash from operating activities up £ 0.7 billion to £ 2.0 billion , and free cash flow up £ 0.8 billion to £ 1.8 billion . This primarily reflects a lower tax payment and working capital benefit driven by reduced creditor balances at the end of fiscal 20 , as a result of reduced sales demand and cost control measures triggered in response to Covid - 19 . Creditor balances have now recovered to more normalised levels . Basic eps of 67.6 pence decreased 14.6 % . Pre - exceptional eps declined 12.8 % to 69.9 pence , driven primarily by unfavourable exchange and lower operating profit . Interim dividend increased 2 % to 27.96 pence per share . Strong sequential performance improvement in all regions compared to the second half of fiscal 20. Expecting continued impact in the second half of fiscal 21 from on - trade restrictions and disruption to Travel Retail . Strategic and operational highlights in F21 H1 • • • Supported the recovery of the hospitality sector through ‘ Raising the Bar , ' our $ 100 million global two - year programme , which has already reached around 30,000 outlets in seven countries . Rapidly responded to increased consumer demand in the off - trade channel , leading to market share gains . Delivered broad - based growth across most categories , including tequila , gin , Canadian whisky , US whiskey , liqueurs and ready to drink . Leveraged deep understanding of consumer behaviour , innovating across our brands to recruit new consumers and unlock new occasions in convenience and at - home . Increased investment in digital capabilities , including e - commerce . • Continued capex investment in capacity , consumer experiences and sustainability . • Completed acquisition of Aviation American Gin and Davos Brands , further premiumising our portfolio . • Leveraged our embedded culture of everyday efficiency to drive continued productivity savings . Launched ' Society 2030 : Spirit of Progress ' , our 10 - year sustainability action plan , building on our strong track record in sustainability and responsibility . See page 51 for explanation and reconciliation of non - GAAP measures . Ivan Menezes , Chief Executive , said : " We delivered a strong performance in a challenging operating environment , returning to top line organic sales growth during the half . We rapidly pivoted to the channels and occasions most relevant to consumers and invested behind new opportunities . This more than offset the impact of on - trade restrictions and the decline in Travel Retail . North America , our largest market , performed particularly strongly and ahead of our expectations . Consumer demand has been resilient and the spirits category continues to gain share of total beverage alcohol . Across other regions we 1