Diageo reports 8.3% jump in sales

By Lisa Riley

Published: 29 July, 2021

Diageo has reported an 8.3% jump in sales to £12.7bn with strong organic growth offset by an adverse foreign exchange impact in the year to 30 June 2021.

Organic net sales were up 16%, driven by growth across all regions.

Operating profit increased 74.6% to £3.7bn, with organic operating profit growth up 17.7%, following decline in fiscal 20, boosted by growth in all regions except Europe and Turkey.

“I am very pleased with the strong financial results we have delivered in fiscal 21, while continuing to invest in long-term sustainable growth,” said CEO Ivan Menezes.

“We delivered organic net sales growth across all regions, led by a strong performance in North America, and we held or gained off-trade market share in over 85% of our business,” he said.

The results demonstrated the “strength and relevance” of Diageo’s brands and the “extraordinary efforts of our talented people”, he added.

“I believe that our foundation, built through outstanding brand-building, active portfolio management, consumer-led innovation, smart investment in data analytics tools and embedding a culture of everyday efficiency, has been a key competitive advantage for Diageo.

“We were well-positioned to successfully manage the challenges created by Covid-19, we have responded quickly to changing consumer trends and we have emerged stronger.”

During the pandemic, Diageo has supported the hospitality industry through various initiatives, including its $100m global fund to enable the safe re-opening and recovery of pubs and bars.

The business also built on its ESG track record with the launch of ‘Society 2030: Spirit of Progress’, its new 10-year action plan to shape a more sustainable and inclusive business.

“While our business has recovered strongly in fiscal 21, with net sales growth on a constant basis ahead of fiscal 19 in three of our five regions, we expect near-term volatility in some markets,” said Menezes.

“However, I remain optimistic about the growth prospects for our industry, with spirits continuing to gain share of total beverage alcohol globally and premiumisation trends remaining strong.

“I believe Diageo is very well positioned to capture these exciting opportunities to drive long-term sustainable growth and shareholder value.”

In April, Diageo announced it had collaborated in a pilot project to pioneer the lowest carbon footprint glass bottles ever produced for a Scotch whisky brand.