Spirits producer Diageo has recorded a 15.8% rise in half-year net sales to £8 billion, driven by growth across all of its regions.
The owner of Gordon’s gin and Smirnoff vodka has reported broad-based growth across most categories, with a particularly strong performance in scotch, tequila and beer.
For the six months to 31 December, Diageo’s operating profit increased 22.5% to £2.7 billion.
The company has benefited from shoppers stocking up during the pandemic, often trading up to more expensive types of alcohol. Sales of premium products made up more than 50% of net sales.
Diageo chief executive Ivan Menezes said that consumer demand has remained resilient in the off-trade channel. Meanwhile, the company has benefitted from the continued recovery of the on-trade channel – particularly in Europe, where net sales were up 21%, and North America, where sales were up 10%.
“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,” said Menezes.
“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.”
Menezes continued: “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.”
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