Diageo 1st Half Pretax Profit Rose on Better-Than-Expected Sales, Higher Pricing -- Update
26 Januar 2023 - 9:21AM
Dow Jones News
By Michael Susin
Diageo PLC said Thursday that pretax profit rose in the first
half of fiscal 2023, supported by better-than-expected sales
volumes due to higher prices, and raised its dividend payout.
The London-based maker of Johnnie Walker Scotch whisky, Guinness
stout and Smirnoff vodka made a pretax profit of 3.06 billion
pounds ($3.73 billion) for the six months ended Dec. 31 compared
with GBP2.72 billion the prior year.
Organic net sales grew 9.4%, above the company-provided market
consensus estimate of 7.9%, reflecting organic volume growth of
1.8% and a positive price mix of 7.6% mainly driven by price
increases across all regions.
It added that super-premium-plus brands--its most expensive
category--contributed 57% of net sales and drove 65% of the organic
net sales growth.
Net sales rose to GBP9.42 billion from GBP7.96 billion the prior
year. A consensus estimate taken from FactSet and based on three
analysts' projections saw Diageo's net sales at GBP9.22
billion.
"We have delivered targeted price increases across all regions,
enabled by our expertise in revenue growth management and supported
by strong consumer demand for our brands. This, combined with our
culture of everyday efficiency, has allowed us to increase our
investments," Chief Executive Ivan Menezes said.
Operating profit rose to GBP3.16 billion from GBP2.74 billion a
year earlier supported by cost control despite increased
inflation.
The board declared an interim dividend of 30.83 pence a share,
up from 29.36 pence declared a year ago.
Looking ahead of the second half, the company said it remains
confident in the resilience of the business and in its ability to
navigate volatility as it expects operating environment to remain
challenging.
Diageo backed its guidance of organic net sales growth in the
range of 5% to 7% and organic operating profit growth in the range
of 6% to 9% for fiscal 2023 to fiscal 2025.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
January 26, 2023 03:06 ET (08:06 GMT)
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