Strong performance from Diageo but Smirnoff see sales dip
Diageo has reported a strong performance with operating profit up 6.1% on net sales of £6.5bn. The results, which were stronger than expected, covered the first six months of its fiscal year, although the company did warn that the rising pound could impact on its profits for the last six months.
Ivan Menezes, Chief Executive, (pictured) commenting on the results said, “These results demonstrate continued positive momentum from the consistent and rigorous execution of our strategy. We have delivered broad based improvement in both organic volume and net sales growth. We have increased investment behind our brands and expanded organic operating margin through our sustained focus on driving efficiency and effectiveness across the business.
By consistently delivering on our six strategic priorities, Diageo continues to get stronger: we have better consumer insight through superior analytics, improved execution on brand and commercial plans and have embedded everyday efficiency across the business through our productivity initiatives. This has enabled continued growth, improved agility, and consistent cash flow generation.
The company saw growth across all regions except for Asia Pacific. Most of its brands saw growth too with Captain Morgan and Baileys both up 6%, Johnnie Walker up 7% and Guinness up 4%, one of the biggest rises was Tanqueray which saw a 16% jump in sales. However Smirnoff sales dipped 1%.
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