Half-year sales jump at Diageo

The drinks giant said net sales in the six months to 31 December rose 18.4% to £9.4bn, with organic growth of 9.4% beating analyst expectations for a 7.9%. The blue chip, whose brands include Baileys, Johnnie Walker, Guinness and Smirnoff, among others, added that it had seen growth across all its regions. Volumes rose by 2% on an organic basis.

Operating profits jumped 15% to £3.2bn, with earnings per share up 20% at 100.9p. Diageo benefited from both price increases as well people drinking more premium spirits.

Ivan Menzies, chief executive, said: "We have made a strong start to fiscal 2023. Diageo is 36% larger than it was prior to Covid-19, reflecting the strength of our diversified footprint and advantaged portfolio."

Looking to the rest of the year, Menzies said the group was on track to meet medium-term guidance for consistent organic net sales of between 5% and 7%, and sustainable organic profit growth of between 6% and 9%, for 2023 to 2025.

He added: "While the operating environment remains challenging, I remain confident in the resilience of our business and our ability to navigate volatility."