Diageo sales surge as consumers choose luxury spirits post lockdown

Diageo saw sales surge in the first six months of 2022 as consumers celebrated the easing of lockdown restrictions by splashing out on high-end spirits.

Shares in Diageo, which also owns major brands including Guinness and Pimm’s, ticked higher on Thursday morning.

The spirits distributor revealed net sales grew by 21.4% to £15.5 billion over the year to June 30, compared with the previous year.

The group said just over 11% of this growth was due to higher prices and customers choosing to buy more expensive drinks.

It was also bolstered by the continued recovery of pubs, bars and restaurants after the easing of pandemic restrictions.

As a result, Diageo’s operating profit increased by 18.2% to £4.4 billion for the year, towards the top of market forecasts.

READ MORE: Diageo scraps cardboard gift boxes from scotch portfolio

“In a year of significant global supply chain disruption, our double-digit volume growth demonstrates the tremendous agility and resourcefulness of our teams,” said Diageo chief executive Ivan Menezes.

“Our net sales growth was across categories. We benefitted from the on-trade recovery, continued global premiumisation trends, with our super-premium-plus brands up 31%, and from price increases across our regions.”

The group’s European operation witnessed a 26% jump in sales, with sales across Great Britain up 20% for the year.

Beer sales were strong as the reopening of pubs helped drive a 52% jump in British Guinness sales.

It also highlighted at 12% increase in spirits sales in Britain, driven by rises across vodka, rum, Baileys, and scotch.

However, it highlighted a “decline” in gin after the recent boom in demand appeared to stall.

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