Diageo posts sharp increase in full-year profits amid strong growth in most regions

by | Aug 1, 2023

(Sharecast News) – Diageo reported a sharp rise in full-year profits amid strong growth in most regions.
Company boss, Debra Crew, highlighted 6% growth in the company’s organic net sales and 7% for operating profits, saying that both had fallen within Diageo’s medium-term guidance.

“These results demonstrate Diageo’s ability to consistently deliver resilient performance, even in challenging macro environments,” she also said.

For the year ending on 30 June, the spirits maker posted an 11% jump in reported revenues to reach £17.11bn.

That drove a 10% rise in operating profits before exceptional items of £622m to hit £5.25bn.

Basic earnings per share before exceptionals increased 8% to 163.5p.

Crew also called attention to the “strong” growth seen in four of the company’s five regions, including double-digit increases in Europe and Asia Pacific.

North America on the other hand was described as “stable” as the US spirits industry continued its post-pandemic normalisation.

The company’s free cash flow however reduced by £1.0bn to £1.8bn as a result of higher working capital outflows, tax and interest payments and capex.

The full-year dividend meanwhile was increased 5% to 80.0p.

As of 0903 BST, shares of Diageo were 2.33% higher to 3,476.50p.

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