Diageo sales leap as Guinness maker warns ‘near-term volatility to remain’
Guinness maker Diageo toasted to the reopening of hospitality as it reported a leap in half-year sales.
In an update on Thursday, the drinks giant reported net sales of £8.0bn, up 15.8 per cent.
Its operating profit hit £2.7bn, a jump of 22.5 per cent. Bosses thanked a resilient demand from drinkers at home as well as returning pub and bar goers, especially in Europe and North America.
An improvement in the company’s organic operating margin was driven by strong sales volume growth and continued premiumisation.
Diageo’s chief executive said the firm continued to expect organic net sales to grow within a range of five to seven per cent from the 2023 fiscal year to the 2025 fiscal year. Organic operating profit was also forecast to grow within a range of six to nine per cent.
Ivan Menezes added: “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.”
The CEO said he expected “near-term volatility to remain”, including potential side effects from Covid, global supply chain challenges and rising inflation.
However, Menezes said he was confident Diageo would be able to “successfully navigate” these disruptions through the rest of the year.