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Diageo, the beverages company behind the Guinness, Baileys and Smirnoff brands, achieved solid growth in sales in the year to June 30th.
Net sales, which are total revenue minus excise duties, rose 6.0% from £10.76bn to £11.43bn during the 12-month period, up 5.0% on an organic basis, helped by four percentage points of positive price/mix. Volumes were up 5.0% at 165m equivalent units, up 1.0% organically as growth in the spirits category offset weakness in beer and wine.
The top line grew strongly in North America - the region accounted for around a third of group net sales - with sales up 5.0% driven by the strength in the US spirits market which benefited from positive demographics and "consumers' wish to premiums".
African, Eastern Europe & Turkey - classified as one newly formed region - saw sales increase 11% and is now Diageo's biggest contributor to net sales growth. Latin America & Caribbean and the Asia Pacific regions also performed well.
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