Diageo has reported its preliminary results for the last year, with strong growth in net sales, operating profit and cash generation.
The company’s reported net sales of £12.7bn is an increase of 8.3 per cent, with strong organic growth, partially offset by an adverse foreign exchange impact.
Reported operating profit (£3.7bn) increased 74.6 per cent, while in Asia Pacific, organic net sales grew 14 per cent, following a 16 per cent decline in fiscal 20, which the company said was driven by strong recovery in Greater China and Australia.
Ivan Menezes, Chief Executive, said: “I am very pleased with the strong financial results we have delivered in fiscal 21, while continuing to invest in long-term sustainable growth. 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 per cent of our business.
“These results demonstrate the strength and relevance of our brands and the extraordinary efforts of our talented people. I would like to thank all of my colleagues for their dedication and resilience, and to express my deepest condolences to all who have lost loved ones this year due to the pandemic.
“A key priority has been supporting the hospitality sector through the pandemic, including our $100 million global fund to enable the safe re-opening and recovery of pubs and bars. We have also built on our successful ESG track record with the launch of ‘Society 2030: Spirit of Progress’, our 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. 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.”
Diageo Australia Managing Director, Angus McPherson, told The Shout: “I’m proud of the strong performance we’ve delivered in the Australian market despite the challenges of the last 12 months. We had to be agile to navigate our way through these challenges and because of that we’ve been able to leverage different opportunities to drive growth and bring new consumers into the spirits category through our market leading portfolio of brands.
“We found some really creative ways to inspire consumers on how to make great cocktails at home and turbocharged our innovation pipeline, launching 45 per cent more NPD in F21 than the previous year including the first Johnnie Walker Black RTD anywhere in the world and the local launch of Gordon’s 0.0% that will benefit from the huge growth we’re seeing in the low- and no-alcohol category.
“The Australian spirits industry is in such an exciting place right now, we’ve got the potential to be a real export powerhouse for the Australian economy and there’s a bright future for the category as it goes from strength to strength.”