- 12-month sales increase 21.4% to GBP15.45bn (US$18.66bn)
- Compared to pre-pandemic – 12 months to end of June 2019 – top-line rises 9%
Diageo has maintained its healthy growth rate for sales in the first six months of 2022, resulting in the group’s financial full-year closing at over 20% up.
Six months after reporting a 20% top-line lift for the six months to the end of December, Diageo has closed its fiscal-2022 – to the end of June – at +21.4%. Although the 12-month period cycles the height of the global pandemic, sales also impressed compared to the 12 months to June 2019, climbing 9%.
Of Diageo's highest-profile brands, Johnnie Walker's strong showing was credited to a healthy appetite for Scotch whisky in the 'Latin America & Caribbean' and 'Asia-Pacific' reporting regions. At the same time, the "partial recovery" of the Global Travel Retail sales channel compared to a year earlier benefitted both the brand and the wider Scotch category.
Guinness has the on-premise in Europe to thank for its strong 12 months, while Don Julio confirmed the "fast-growing" Tequila category in the US. The brand's 36% leap in year-on-year sales was overshadowed by Diageo's total Tequila operations, which were up 55%.
Double-digit increases were recorded from all five of the company's reporting regions, where 'North America' (+14%) was neck and neck with 'Europe & Turkey' and 'Asia-Pacific' combined. Spirits brands in the US delivered a 17% sales increase, thanks to price rises during the year as well as "strong growth in our super-premium-plus portfolio". Tequila was the main driver for Diageo in the country, while the group's Scotch and American whiskey portfolios were also up by double digits. Rum, which is dominated by Captain Morgan, and Baileys both registered US declines, however.
Elsewhere, 'Europe' (+30%) was the engine for Guinness as the on-premise returned in force over the 12 months, particularly in its home market of Ireland as well as in the UK and southern Europe. 'Asia-Pacific' (+16%) delivered a more reasonable growth rate given the region's cycling of less-severe Covid-related restrictions in the 12 months to June 2021. That said, localised restrictions in China during fiscal-2022 hampered performance, offset by 'Travel Retail Asia & Middle East', which posted a triple-digit sales rise.
Today's results announcement also detailed a loss of GBP146m from Diageo's decision in March to withdraw from Russia, following the country's invasion of Ukraine.
Looking forward, the company has forecast annual sales growth rates of between 5% and 7% over the "medium term".
Diageo's official full-year results announcement.
On-premise recovery turbocharges super-premium gin - Category Intel
