Diageo organic sales blow past estimates on strong U.S. demand

Spirits group Diageo on Thursday reported a better-than-expected rise in full-year organic net sales growth, helped by the reopening of bars and restaurants in some markets and strong retail demand across all its regions. Organic net sales, which excludes the impact of acquisitions and foreign exchange, rose 20% in North America, the company's biggest market, where consumers traded up to more premium spirits including Tequilas and higher-end versions of Johnnie Walker Scotch whiskey.


Reuters | Updated: 29-07-2021 12:23 IST | Created: 29-07-2021 12:10 IST
Diageo organic sales blow past estimates on strong U.S. demand
Representative Image Image Credit: Twitter (@Diageo_News)
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Spirits group Diageo on Thursday reported a better-than-expected rise in full-year organic net sales growth, helped by the reopening of bars and restaurants in some markets and strong retail demand across all its regions.

Organic net sales, which excludes the impact of acquisitions and foreign exchange, rose 20% in North America, the company's biggest market, where consumers traded up to more premium spirits including Tequilas and higher-end versions of Johnnie Walker Scotch whiskey. Turkey and Northern Europe also contributed to the strong performance, with sales growing more than 20%, driven by demand for scotch whiskies.

Organic net sales in Africa rose 20%, fueled by Guinness and spirits such as Smirnoff vodka. Overall, organic net sales rose 16% for the year ended June 30, higher than the 13.7% analysts had expected, according to company-supplied estimates.

The maker of Tanqueray Gin also said it expects the organic net sales momentum to continue into fiscal 2022, but with some "near-term volatility". The company sees travel retail remaining under pressure.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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