Diageo Targets 14% Profit Growth, Led By North America, Global RecoveryMay 12, 2021
In a trading update this morning, Diageo announced that it’s expecting organic operating profit growth to be at least 14% in its fiscal year ending in June, with net sales growth trailing only slightly behind that figure. Chief executive Ivan Menezes noted the group’s “strong competitive performance across key markets,” and said it would resume its return of capital of up to £4.5 billion ($6.37b) to shareholders, which had paused during the pandemic.
Diageo said business remains “particularly strong” in North America, its largest market, led by resilient consumer demand and innovation. That momentum builds on a robust fiscal first half ended in January, in which Diageo’s U.S. sales grew by 15%. Its super-premium and luxury Tequila stable was a growth driver, with net sales for the category up 80% in North America, led by the Don Julio and Casamigos brands.
In this morning’s update, Diageo said that despite outbreaks in India and other pockets of Asia, progress is ongoing at the global level. In Europe, the off-trade is leading the way as the on-trade gradually reopens, while most markets across Africa, Asia Pacific, and Latin America and the Caribbean are continuing to recover, according to the company.—Daniel Marsteller
|Diageo―Key Brands in the U.S.
(millions of 9-liter case depletions)
|Crown Royal||Canadian Whisky||6.88||7.23||5.1%|
|Captain Morgan||Virgin Islands Rum||5.50||5.58||1.5%|
|Ketel One||Imported Vodka||2.40||2.53||5.5%|
|Johnnie Walker||Scotch Whisky||1.85||1.89||1.9%|
|Total Key Brands2||32.0||33.2||3.7%|
|1 Includes flavors.
2 Addition of columns may not agree due to rounding.
3 Based on unrounded data.
Source: IMPACT DATABANK © 2021
Tagged : Diageo