Diageo sales up 16% but company sounds inflation warning
Drinkers buying spirits to make cocktails at home also helped the drinks giant’s revenues rise above above pre-Covid levels, with £8bn in first-half net sales representing a 16% rise on a year ago and also higher than in the same period in 2019.
The company said shipping, raw materials and energy bills had all increased significantly and that passing some of those costs onto the customer was unavoidable.
Chief executive Ivan Menezes said: “While we expect near-term volatility to remain, including potential impacts from Covid-19, global supply chain constraints and rising cost inflation, I am confident in our ability to successfully navigate these disruptions through the remainder of the year.”
Europe was among the strongest region for the business, with sales up 21%, or £309m to £1.75bn.
Beer sales across the continent were up 44%, with Diageo highlighting strong sales of Guinness in Great Britain and Ireland.
Tequila was the fastest-growing drink for the business, with sales up 56% as its Don Julio and Casamigos brands enjoyed rising popularity
There was also a 27% jump in whisky sales.
Overall, revenues grew 12.6% to £11.8bn and pre-tax profits rose 24% to £2.7bn.
