Diageo full-year sales jump 21.4%

Drinks maker Diageo reported a jump in full-year sales on Thursday thanks to "resilient" demand and price increases.

Net sales rose 21.4% to £15.5bn, with double-digit growth across all regions. The performance reflects the continued recovery of the on-trade business, resilient consumer demand in the off-trade and market share gains, Diageo said.

Reported operating profit was up 18.2% to £4.4bn.

Diageo said growth was broad-based across categories, with particularly strong growth in scotch, tequila and beer. Premium-plus brands contributed 57% of reported net sales and drove 71% of organic net sales growth.

The company said price increases and supply productivity savings more than offset the absolute impact of cost inflation, and mostly offset the adverse impact on gross margin.

Chief executive Ivan Menezes said: "We benefitted from the on-trade recovery, continued global premiumisation trends, with our super-premium-plus brands up 31%, and from price increases across our regions. I am particularly proud of the performance of Johnnie Walker, which delivered double-digit growth across all regions to surpass 21 million cases globally. This fantastic milestone exemplifies our world-class brand-building and execution capabilities.

"Looking ahead to fiscal 23, we expect the operating environment to be challenging, with ongoing volatility related to Covid-19, significant cost inflation, a potential weakening of consumer spending power and global geopolitical and macroeconomic uncertainty. Notwithstanding these factors, I am confident in the resilience of our business and our ability to navigate these headwinds."