Diageo 1st Half Net Profit Rose on Higher Sales
27 January 2022 - 6:53PM
Dow Jones News
By Michael Susin
Diageo PLC said Thursday that net profit rose in the first half
of fiscal 2022, boosted by better-than-expected sales volume
despite unfavorable foreign exchange.
The London-based maker of Johnnie Walker scotch whisky, Guinness
stout and Smirnoff vodka made a net profit of 1.97 billion pounds
($2.65 billion) for the six months ended Dec. 31 compared with
GBP1.58 billion the prior year.
Adjusted operating profit--one of the company's preferred
metrics, which strips out exceptional and other one-off items--was
GBP2.74 billion compared with GBP2.26 billion a year earlier.
Net sales rose to GBP7.96 billion from GBP6.87 billion the prior
year, driven by a strong growth across all regions.
A consensus estimate taken from FactSet and based on four
analysts' projections saw Diageo's net sales at GBP7.73
billion.
Diageo said it continues to expect organic net sales in the
range between 5% and 7% and organic operating profit to grow in a
range between 6% and 9% from 2023 to 2025.
"We have made a strong start to fiscal 22. While we expect
near-term volatility to remain, including potential impacts from
Covid-19, global supply chain constraints and rising cost
inflation, I am confident in our ability to successfully navigate
these disruptions through the remainder of the year," Chief
Executive Ivan Menezes said.
The board declared a dividend of 29.36 pence, up from 27.96
pence a year earlier.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
January 27, 2022 02:38 ET (07:38 GMT)
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