Spirits giant Diageo beat its full-year sales forecasts as people continued treating themselves to expensive scotch, whisky and tequila despite high prices.
The world's largest spirits maker, which makes Johnnie Walker whisky, Captain Morgan's rum and Ketel One vodka, said organic net sales rose 6.5% in the year to June 30, marginally beating analyst forecasts for a 6.4% increase, according to a company-provided consensus.
Organic Net Sales Growth
"We drove double-digit organic net sales growth in scotch, tequila, and Guinness, with our premium-plus brands contributing 57% of overall organic net sales growth," Diageo's new chief executive Debra Crew said in a statement.
"We delivered strong growth in four of our five regions, with Europe and Asia Pacific growing double-digit."
Diageo said its organic net sales increase reflected 7.3 percentage points of price/mix and a decline in organic sales volumes of 0.8%.
Reported volumes were down by 7.4%, it added.
According to the spirits giant, growth in net sales was delivered across most of its categories, particularly in scotch, tequila and beer, with its premium-plus brands accounting for a higher share of sales.
'Macroeconomic Uncertainty'
"Looking ahead to fiscal 24, I expect operating environment challenges to persist, with continued cost pressure and ongoing geopolitical and macroeconomic uncertainty," Crew added.
"This requires us to move with greater speed and agility. My near term opportunities to drive the business focus on bolder and faster innovation, stepping up operational excellence to meet consumers' evolving tastes and preferences while driving scotch, tequila and Guinness."
During the period, the drinks firm announced the acquisition of Mr Black, an Australian coffee liqueur, Balcones Distilling, a Texas craft distiller and Don Papa Rum, a dark rum from the Philippines.
Additional reporting by ESM
