Diageo 1st Half Net Profit Rose on Higher Sales; Strong Growth Across All Regions -- Update
By Michael Susin
Diageo PLC said Thursday that net profit rose in the first half
of fiscal 2022, boosted by higher sales volume and the strong
growth of premium brands.
The London-based maker of Johnnie Walker scotch whisky, Guinness
stout and Smirnoff vodka made a net profit of 1.97 billion pounds
($2.65 billion) for the six months ended Dec. 31, compared with
GBP1.58 billion a year earlier.
Adjusted operating profit--one of the company's preferred
metrics, which strips out exceptional and other one-off items--was
GBP2.74 billion, compared with GBP2.26 billion, the company
Net sales rose to GBP7.96 billion from GBP6.87 billion, driven
by a strong growth across all regions, it said.
A consensus estimate taken from FactSet and based on four
analysts' projections had expected net sales to be GBP7.73
The company said growth was supported by positive trends in the
industry, especially premium-plus brands of scotch, tequila and
Chinese white spirits.
Diageo said it also benefited from a continued recovery of the
on-trade channel in Europe and North America, together with the
partial recovery of travel retail.
Organic net sales grew 13% in North America, 27% in Europe and
13% in Asia-Pacific, with Greater China net sales growth of 18%,
Diageo said it continues to expect organic net sales in the
range between 5% and 7% and organic operating profit to grow in a
range between 6% and 9% from 2023 to 2025.
The company said that inflationary pressures are being mitigated
in part by its focus on revenue growth and productivity
"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," Chief
Executive Ivan Menezes said.
The board declared a dividend of 29.36 pence, up from 27.96
pence a year earlier.
Write to Michael Susin at email@example.com
(END) Dow Jones Newswires
January 27, 2022 03:20 ET (08:20 GMT)
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