Operating profits worldwide leapt by 18% per cent to £4.4bn in the 12 months to the end of June, off the back of the hospitality sector’s recovery and continuing consumer demand for off-sales.
Year-end results show sales across its range increased by more than 21% globally to £15.5 billion in the London-listed company’s latest financial year.
The Smirnoff and Gordon’s Gin maker said the figures reflect “strong double digit growth” across all regions, underpinned by favourable industry trends including the growth of premium spirits brands.
Europe, where Diageo’s net sales increased 26%, led the charge with bars reopened across the continent.
The company, which announced plans in June to wind down its Russian operations by the end of the year following Russia’s invasion of Ukraine, said its eastern European sales were up 18%.
Diageo chief executive Ivan Menzes said: “In a year of significant global supply chain disruption, our double-digit volume growth demonstrates the tremendous agility and resourcefulness of our teams. Our net sales growth was across categories.
“Looking ahead to fiscal 23, we expect the operating environment to be challenging, with ongoing volatility related to Covid-19, significant cost inflation, a potential weakening of consumer spending power and global geopolitical and macroeconomic uncertainty. Notwithstanding these factors, I am confident in the resilience of our business and our ability to navigate these headwinds.”
