Business
Diageo delivers strong performance
Diageo delivers strong performance.
About this update from Diageo Plc
[{"type":"text","content":"\n\nDiageo delivers strong performance while investing in sustainable long-term growth\n \nDelivered strong net sales and operating profit growth within medium-term guidance\n- Reported net sales of £17.1 billion, increased 10.7%, primarily reflecting strong organic net sales growth, and favourable impacts from foreign exchange.\n- Organic net sales grew 6.5%. Price/mix of 7.3 percentage points reflects a high single-digit contribution from price and premiumisation.\n- Reported volume declined by 7.4%, and organic volume declined by 0.8%.\n- Growth reflects our advantaged portfolio of strong brands, diversified footprint, and premiumisation.\nResilient operating margin despite increased cost inflation\n- Reported operating profit grew 5.1% to £4.6 billion. Reported operating margin declined by 147bps, with organic margin expansion more than offset by exceptional operating items and foreign exchange.\n- Organic operating profit grew 7.0% and organic operating margin expanded by 15bps, driven by disciplined cost management. Price increases more than offset the absolute cost inflation impact on gross margin.\nAdvantaged portfolio and premiumisation drove market share growth\n- Growth in organic net sales was delivered across most categories, particularly in our three largest categories: scotch, tequila and beer.\n- Premium-plus brands comprised 63% of reported net sales, a 7 percentage point increase from fiscal 19. \n- Total trade market share grew or held in over 70%(1) of total net sales value in measured markets.\nOptimisation of portfolio through acquisitions and disposals\n- Acquired Mr Black, a leading Australian premium coffee liqueur, Balcones Distilling, a Texas craft distiller and one of the leading producers of American single malt whiskey and Don Papa Rum, a super-premium, dark rum from the Philippines.\n- Completed the sale of Guinness Cameroun S.A., disposed of Archers and completed the disposal and franchising of a portfolio of brands in India.\nInvested to sustain long-term growth\n- Increased organic marketing investment by 5.6%, reflecting strong, consistent investment in our brands.\n- Invested £1.2 billion of capital expenditure (capex) in supply c...