Diageo shared a resilient performance in the six months leading up to December despite pub and bar closures.
The Guinness and Smirnov manufacturers have sold just 5%, with £6.9 billion and pre-tax profits at £2.2 billion, down 10%.
Despite coronavirus restrictions and pub closures, Diageo has strong sales of Don Giulio, Casamigos Tequila and Braite Bourbon at US retailers, leading to strong sales in China. He said that.
In North America, the group increased tequila sales by 80%, with overall sales rising by 12.3%.
Diageo continues to increase annually in dividends, increasing by 2% to a share of 27.96pa.
Commenting on the results, CEO Ivan Menezes said: “New habits are developing, such as making cocktails at home, some of which stick. But consumer orientation to get back to socializing outside the home is very high, so the conditions return to normal. As we expect consumers to return to pubs, bars, restaurants and sporting events, our business will be recalibrated.”
“We expect ongoing volatility and disruptions in the second half of the year, especially on the (hospitality) channel.
Russ Mold, AJ Bell’s investment director, commented on the latest results: Shopping for spirits at pubs, restaurants and airports.
“The increase in alcohol sales during lockdown as people are forced to entertain themselves at home. In particular, the sales of spirits are maintained well, and pre-mixed drinks are very popular. There is, however, long-term Diageo is also a key factor in the sale of premium spirit products, so they really need all the leisure facilities to reopen.
“The results show some comforting signs that illustrate the characteristics of well-run businesses. The ability to continue investing in marketing and product innovation will withstand it as the market reopens. It was fast to restrain it. This is a huge achievement for a business of that size. And it can still generate enough cash to grow dividends,” Mold added. .
Diageo’s shares (LON:DGE) rose 2.9% to £29.26 after trading renewal. They closed Thursday’s deal at £29.43.
