TOP NEWS: Diageo delivers strong sales and accelerates capital returns

(Alliance News) - Diageo PLC said on Thursday said it delivered strong net sales growth during ...

Alliance News 27 January, 2022 | 10:22AM
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(Alliance News) - Diageo PLC said on Thursday said it delivered strong net sales growth during its recent half year, amid resilient consumer demand, and announced it will accelerate its capital return programme.

For the six months to December 31, the London-based distiller and brewer reported that net sales rose 16% to GBP7.96 billion from GBP6.87 billion the year before, and pretax profit was GBP2.72 billion, up 24% from GBP2.20 billion.

The Johnnie Walker scotch and Smirnoff vodka maker cited resilient consumer demand, market share gains, and favourable industry trends around spirits for the growth.

Its premium plus brands contributed 56% of reported net sales and drove 74% of organic net sales growth, the company explained.

Operating profit jumped 23% to GBP2.74 billion from GBP2.24 billion, and the operating profit margin increased by 190 basis points.

Looking ahead, Diageo said from financial 2023 to 2025, it continues to expect organic net sales to consistently grow within a range of 5% to 7% per year, and organic operating profit to grow sustainably within a range of 6% to 9%.

Diageo raised its interim dividend 5% to 29.36 pence from 27.96p the year prior.

The company added that during the half it returned GBP500 million to shareholders via share buybacks as part of its GBP4.5 billion capital return programme.

It has decided will accelerated the timeline of that programme, with the full return now to be completed during financial 2023.

Shares in Diageo were up 0.4% at 3,661.44 pence on Thursday in London.

By Heather Rydings;

Copyright 2022 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Diageo PLC 3,598.00 GBX 0.78

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