Diageo sales volumes up 2.3%

Diageo Ireland saw a net sales increase of 3% in the year to the 30th June 2019 according to Diageo’s recently-published preliminary results.

 

 

The report states that net beer sales were flat here, adding that, “Lager net sales grew 4% driven by strong growth in Rockshore”.

However net sales of Guinness here declined 2% “impacted by difficult competitive conditions. In spirits, net sales grew double-digit largely driven by Smirnoff, Baileys and Gordon’s.”

Across Europe, Diageo’s net sales of lager grew 5% driven by Rockshore in Ireland, while Guinness Draught grew 1%.

“Baileys was up 2% largely driven by the launch of Baileys Strawberries & Cream in Continental Europe. Smirnoff net sales declined 2% driven by Great Britain and Continental Europe, partially offset by growth in Ireland,” stated Diageo.

Pre-tax profits at Diageo Ireland’s parent company Diageo plc increased 13% to £4.235 billion from £3.740 billion on net sales up 6% to £12.9 billion. Reported Operating Profits were £4 billion (up 9.5%) on reported net sales of £12.9 billion (up 5.8%) with organic growth partially offset by acquisitions and disposals in the year to 30^th June 2019 according to the company’s preliminary results.

Organic operating profit before exceptional items grew 9.0% as organic sales volumes rose 2.3% with organic net sales growth up 6.1%.

Growth in Europe “was driven by Continental Europe, Great Britain and Ireland,” states the report with net sales up 3% and beer sales up 1%.