Skip to content 
Search

Latest Stories

Tequila brands, whisky push Diageo's sales up

Tequila brands, whisky push Diageo's sales up

SPIRITS MAKER Diageo on Thursday (29) reported a 16 per cent increase in sales for the year ending June 30, beating estimates of 13.7 per cent growth.

The reopening of North American bars and restaurants and increased demand for its tequila brands and Johnnie Walker whisky have helped the firm to post a better-than-expected rise in full-year organic net sales growth. 


The company's Indian American chief financial officer Lavanya Chandrashekar has said that volatility was coming from lockdowns in markets such as India, South Africa and Indonesia, where there has been a rise in Covid-19 cases in recent months.

Diageo said it expected organic net sales momentum to continue into fiscal 2022, but with volatility in the short term.

Diageo, whose shares reversed early losses to trade up two per cent on the FTSE 100, also raised its annual dividend by five per cent to 44.59 pence per share.

The company said results were propelled by the US, its biggest market, where easing lockdowns had driven replenishment of stocks at bars and restaurants.

At the same time, consumers continued to shop for more premium spirits such as tequila, liqueurs and bottles of Johnnie Walker scotch at supermarket stores, driving organic net sales in North America up 20 per cent.

In the European region, Turkey and Northern Europe were the strongest performers helped by strong demand for scotch whiskies in shops.

Signs of resurgence were also emerging in Africa, Latin America and Asia, where organic net sales rose by double-digit percentages, in part due to easier comparisons to last year.

"It comes as no surprise that the shuttering of bars and night clubs left Diageo with a nasty hangover of problems," said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.

"However, the strength of the group's brands means it was able to recoup some of its losses through a huge increase in supermarket trade in some key markets, and it has come out of the pandemic in remarkably resilient shape."

More For You

Navroop Singh

Navroop Singh was convicted of five charges including rape and was sentenced on July 4 at Isleworth Crown Court. (Photo credit: Metropolitan Police)

Man jailed for life over rape and attempted rape in west London

A 24-year-old man has been sentenced to life in prison for rape, attempted rape and firearm offences following a Metropolitan Police investigation in west London.

Navroop Singh, of Mellow Lane East, Hayes, was convicted of five charges including rape and was sentenced on Friday, July 4 at Isleworth Crown Court. He must serve a minimum of 14 years.

Keep ReadingShow less
Lepra

'The 100 Club offers a powerful way to support and scale-up this work,' said the organisers.

Lepra launches 100 Club to support community-based leprosy detection

LEPRA launched its first high-value giving network, the 100 Club, on June 26. The event was held at Quilon Restaurant in London and brought together philanthropists, business leaders and supporters of the charity’s work.

The event was hosted by Kalpesh Solanki, Group Managing Editor of Asian Media Group and President of the 100 Club. Remarks were delivered by Lepra’s Chair of Trustees Suzanne McCarthy and CEO Jimmy Innes, who spoke about the organisation’s ASPIRE project.

Keep ReadingShow less
Shubman-Gill-Getty

Gill's 430 runs in the match made him only the fifth batter to score over 400 in a single Test. (Photo: Getty Images)

Gill sets Test record as England face massive chase at Edgbaston

INDIA captain Shubman Gill became the first batter in Test history to score 250 and 150 in the same match, before Mohammed Siraj and Akash Deep struck early to put India in control of the second Test at Edgbaston on Saturday.

Gill followed his first-innings 267 with 161 off 162 balls in the second innings. India declared at 427-6 after tea on the fourth day, setting England a target of 608 runs to take a 2-0 lead in the five-match series.

Keep ReadingShow less
family-centre-iStock

Currently, one in four families with children under five do not have access to local children’s centres or Family Hubs. (Representational image: iStock)

£500 million plan to expand family services across England

THE UK government has announced the nationwide rollout of Best Start Family Hubs across every local authority, aiming to support 500,000 more children by 2028.

The hubs are intended to offer easier access to family services and reduce pressure on parents.

Keep ReadingShow less