Diageo plc reports net sales in the fiscal first half rose 16% to GBP 7.96 billion (20% organic) on a 9% increase in volume. Net profit jumped 24% to GBP 1.97 billion.
“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,” said Ivan Menezes, ceo. “We also benefitted from the continued recovery of the on-trade channel, particularly in Europe and North America.
“Strong sales volume growth and continued premiumization 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.
“Strong cash flow generation is enabling re-investment in sustainable long-term growth. We are expanding our production capacity, enhancing our digital capabilities, investing in talent and progressing with our ambitious 10-year sustainability plan,” he said.
Menezes said the company expects continued near-term volatility, including potential impacts from Covid-19, global supply chain constraints and rising cost inflation. “Over the medium-term, from fiscal 23 to fiscal 25, we continue to expect organic net sales to consistently grow within a range of 5% to 7% and organic operating profit to grow sustainably within a range of 6% “to 9%