Diageo reports sales growth of £8bn

74B99462-D78D-4AFC-A71D-DDF55A721067

Diageo has reported sales growth 15.8%, up £8bn, with an operating profit increase of 22.5% in their interim results for the last six months of 2021.

According to the company, this growth reflects continued recovery in the on-trade, resilient consumer demand in the off-trade and market share gains, and was underpinned by favourable industry trends of spirits taking share of total beverage alcohol and premiumisation.    They added that there was broad-based growth across most categories, with a particularly strong performance in scotch, tequila and beer and that Premium plus brands contributed 56% of reported net sales and drove 74% of organic net sales growth.

Ivan Menezes, Chief Executive said. “I am very pleased with our financial results, which build on our growth momentum in fiscal 21. We delivered strong organic net sales growth across all regions and operating margin expansion. This performance demonstrates our world-class brand building capability, supply chain excellence, and agile culture, and reflects the strength of our portfolio across geographies, categories and price tiers.

In the off-trade channel, where consumer demand has remained resilient, we have gained or held market share across the majority of our measured markets. We also benefitted from the continued recovery of the on-trade channel, particularly in Europe and North America.

Strong sales volume growth and continued premiumisation drove an improvement in organic operating margin during the half. This was achieved while increasing our investment in marketing to gain share and support innovation, particularly in North America and Greater China. In addition, our focus on revenue growth management and productivity savings are helping to mitigate the impact of cost inflation.

We have made a strong start to fiscal 22. While we expect near-term volatility to remain, including potential impacts from Covid-19, global supply chain constraints, and rising cost inflation, I am confident in our ability to successfully navigate these disruptions through the remainder of the year..”

Category: Brand News, News
Tags: Chief executive Ivan Menezes, Diageo, Ivan Menezes