This growth was not only driven by the recovery of the on-trade channel but also by resilient consumer demand in the off-trade channel “.. where Diageo continued to gain market share”.
Net sales of Guinness grew by over 76%, benefitting from the partial recovery of the on-trade as Irish Government restrictions eased during the first half of Diageo’s financial year.
Net sales of beer grew 44%, driven by a strong increase in Guinness with the continuing easement of on-trade restrictions, reports the company which points out that this result can be compared to “a significant decline in the first half of fiscal ’21”.
Indeed the global beer and spirits manufacturer delivered strong net sales growth across all regions with reported net sales up 16% to £8 billion, “… with strong organic growth, partially offset by an adverse foreign exchange impact”. Organic net sales were up 20%.
This growth reflects “continued recovery in the on-trade, resilient consumer demand in the off-trade and market share gains and was underpinned by favourable industry trends of spirits taking share of total beverage alcohol and Premiumisation”.
The global brewer and distiller reported an Operating Profit of £2.7 billion for H1, up 22.5% (or up 24.7% organically).