Business
Preliminary Results
Preliminary Results.
About this update from Diageo Plc
[{"type":"text","content":"\n \n \n Diageo delivers strong performance while investing in long-term growth\n \n \n \n \n \n \n \n \n \n \n Delivered strong net sales growth across all regions\n \n \n \n - Reported net sales of £15.5 billion, up 21.4%, primarily driven by strong organic net sales growth, up 21.4%, with strong double-digit growth across all regions.\n \n \n - Growth reflects continued recovery of the on-trade, resilient consumer demand in the off-trade and market share gains, and was underpinned by favourable industry trends of spirits taking share of total beverage alcohol and premiumisation(1).\n \n \n - Price/mix growth was 11.1 percentage points, reflecting positive mix from strong performance in super-premium-plus brands, and mid-single digit price growth driven by price increases across all regions.\n \n \n \n \n \n \n \n \n \n \n \n \n \n Expanded operating margin while increasing marketing investment\n \n \n \n - Reported operating profit of £4.4 billion, up 18.2%, primarily driven by organic operating profit growth. Reported operating margin decreased 77bps, with organic margin expansion more than offset by exceptional operating items of £388 million.\n \n \n - Organic operating profit grew 26.3%, with growth across all regions.\n \n \n - Organic operating margin increased 121bps, reflecting a strong recovery in gross margin and leverage on operating costs, while increasing marketing investment.\n \n \n - Price increases and supply productivity savings more than offset the absolute impact of cost inflation, and mostly offset the adverse impact on gross margin.\n \n \n \n \n \n \n \n \n \n \n \n \n \n Delivered broad-based category growth and gained market share\n \n \n \n - \n Growth was broad-based across categories, with particularly strong growth of scotch, tequila and beer.\n \n \n - Premium-plus brands contributed 57% of reported net sales and drove 71% of organic net sales growth.\n \n \n - \n Off-trade market share grew or held in over 85%(2) of total net sales value in measured markets.\n \n \n \n \n \n \n \n \n \n \n \n \n \n Strengthened portfolio through acquisitions and disposals\n \n \n \n - Acquired 21Seeds, a rapidly growing flavoured tequila brand, and Mezcal Unión, a premium artisanal mezcal brand.\n \n \n -&nb...