javbank.com

Diageo reports profit leap thanks to strong whisky sales

January 26th, 2017 | Posted in: News

Diageo has reported a 28% increase in operating profits to £2.1bn, aided by the weakness of the pound and strong whisky sales.

In the first half of Diageo’s financial year to the end of December, a struggling pound helped drive up sales by 14.5% to £6.4bn, while profit increased by 28% to £2.1bn.

Scotch whisky represented 27% of Diageo’s net sales and was up 6% in the half with growth in North America, Europe, Africa and Latin America and Caribbean driven by Johnnie Walker and Buchanan’s.

Tequila also performed well, with sales up 36% in organic volume sales and 18% in organic net sales and beer sales rose one per cent in organic volume sales.

Vodka and rum saw organic volume declines in the period, with vodka also dipping in organic net sales but all eight spirit categories delivered double-digit sales growth.

Diageo shares rose by 4.6% to £22.40 making it the best performer in the FTSE 100.

Ivan Menezes, Diageo chief executive, said, “We have delivered a strong set of results with broad-based improvement in both organic volume and top line growth and this positive momentum demonstrates continued effective execution of our strategy.

“Highlights this half include improved performance in our US Spirits business and across our scotch portfolio, driven by our focus on marketing with impact, innovating at scale, expanding our route to consumer, and winning in reserve. Progress on productivity supports growth, margin improvement and consistent strong cash flow generation as well as improving our agility.

“Our expectations of delivering stronger financial performance this year are unchanged. We are confident of achieving our medium term objective of consistent mid-single digit top line growth and 100bps of organic operating margin improvement in the three years ending 30 June 2019.”

The following two tabs change content below.

DRAM News Team

Editor at DRAM Magazine
DRAM magazine is Scotland’s leading monthly licensed trade magazine. It has been dedicated exclusively to the on-trade in Scotland for the past 23 years. It is independently owned, edited and published in Scotland. The DRAM is innovative, creative and original. First with the news, and the people in the news. Covering all the latest information on pubs, bars, clubs, restaurants and hotels in Scotland.


DUNNS UNVEIL FIRST CRAFT MARKETPLACE EVENT

Wed 11th October 2017

Dunns Food and Drinks is to host its first ever “Craft Marketplace” event for trade customers on Thursday 2nd November at the Dissecti... Read more.

Ian Macleod to revive Rosebank

Tue 10th October 2017

Ian Macleod Distillers has today (10 October) revealed plans to resurrect one of Scotland’s most cherished distilleries – Rosebank i... Read more.

Taco Bell to open in Glasgow’s Sauchiehall Street

Tue 10th October 2017

Mexican restaurant chain Taco Bell, working with The Adil Group, is planning to open its first Taco Bell in Scotland. It already has 18 in E... Read more.

Diageo to reopen Port Ellen and Brora Distilleries

Mon 9th October 2017

Diageo are investing £35 million in reopening two mothballed distilleries – Port Ellen on Islay and Brora in Sutherland. The company ... Read more.

Say “Aloha” to the Poke Bowl

Sat 7th October 2017

The latest street food trend has arrived in Edinburgh at Broughton Street venue Treacle, in the shape of Poke (pronounced poh-keh) a typical... Read more.

Round up – October 2017

Fri 6th October 2017

Last month Glenfiddich welcomed 350 members of the Scottish on-trade to its spiritual home of Dufftown for the inaugural Glenfiddich Festiv... Read more.

Excellent Result from JD Wetherspoon as they see Profit Increase

Fri 6th October 2017

JD Wetherspoon has revealed its preliminary results. Its full-year pre-tax profits rose from £80.6m to £102.8m this year, a 27.5% increase... Read more.

Tennent’s Annual Trade Shows

Fri 6th October 2017

Tennents trade shows for 2017 will take place on Monday 30 October at Hampden Park in Glasgow and Wednesday 1 November at BT Murrayfield Sta... Read more.

The Balvenie Peat Week Comes to Market

Thu 5th October 2017

The Balvenie has brought out The Balvenie Peat Week Aged 14 Years (2002 Vintage). The Balvenie Peat Week is the product of trials undertaken... Read more.

The Ivy on the Square is Unveiled

Thu 5th October 2017

The Ivy on the Square, Edinburgh,  is the first bar and restaurant to open in Scotland from The Ivy Collection. The Ivy on the Square can s... Read more.

Beauty of the Blend say Tullamore D.E.W

Thu 5th October 2017

Tullamore D.E.W., the William Grant & Sons owned Irish whiskey brand, is launching a through the line, global platform called ‘Beauty ... Read more.

Sue Says – October 2017

Wed 4th October 2017

Well I went to my very first festival last month – I have managed to miss T in the Park and even Rewind, but an invitation from Glenfiddi... Read more.

Hugo Mills Moves from Molson Coors to Sky

Wed 4th October 2017

MOLSON Coors has announced that Hugo Mills, Sales and Operations Director for Scotland is leaving the company to join SKY Business as their... Read more.

Limited edition Bottle for Sailor Jerry

Tue 3rd October 2017

William Grant & Sons has launched a new limited-edition bottle design for Sailor Jerry. This bottle is one in a series of limited-editio... Read more.

Gordon’s Now Comes in Pink!

Tue 3rd October 2017

There’s now a pink version of Gordon’s Gin which has been created to appeal to a “new, younger, adult audience.” say owners Diageo G... Read more.

Benromach Expands Portfolio

Tue 3rd October 2017

The Benromach Distillery Company Ltd has launched a first for the Forres distillery – Benromach Triple Distilled single malt. It is a ligh... Read more.

Finnieston Distillery Co Create Live Music Event

Mon 2nd October 2017

Finnieston Distillery Company (FDC), which recently launched its unique range of craft Scotch whisky cocktails, launched its new quarterly l... Read more.

Glenmorangie Creates Bicycles Made from Whisky Casks

Mon 2nd October 2017

Glenmorangie has formed an innovative collaboration with bicycle pioneer Renovo, to create limited edition bicycles made from the whisky’s... Read more.

Douglas Laing Unveils Big Peat’s Christmas 2017 Edition

Mon 2nd October 2017

Douglas Laing & Co has revealed Big Peat ‘s Christmas 2017 Limited Edition. The annual exclusive release is bottled at natural cas... Read more.

A Second Cask of Single Malt from Strathearn

Sun 1st October 2017

One of Scotland’s smallest whisky distilleries, Strathearn, has launched its second batch of Single Cask Whisky – Cask 028 and Cask 044,... Read more.