Diageo 1st Half Net Profit Rose on Higher Sales

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 [e-mail]

(END) Dow Jones Newswires

January 27, 2022 02:38 ET (07:38 GMT)

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