Diageo interim results ahead of expectations

British multinational beverage alcohol company, Diageo has announced interim results, for the six months ending 31 December 2020.

The group has reported net sales of £6.9bn, down 4.5%, as organic growth of 1% was more than offset by unfavourable exchange.

Operating profit stood at £2.2bn, a decline of 8.3%, driven by unfavourable exchange and a decline in organic operating profit.

Organic net sales rose by 1%, despite a significant impact from Travel Retail and on-trade restrictions.

Organic operating profit were down by 3.4%, driven by channel and category mix. Productivity has benefitted from everyday cost efficiencies, largely offset cost of goods sold inflation.

Chief Executive Ivan Menezes (pictured) said, 'We delivered a strong performance in a challenging operating environment, returning to top line organic sales growth during the half.

'We rapidly pivoted to the channels and occasions most relevant to consumers and invested behind new opportunities. This more than offset the impact of on-trade restrictions and the decline in Travel Retail.

'Our proprietary tools and data-led insights are enabling us to invest smartly in effective marketing and innovation. We continue to strengthen brand equity, premiumise our portfolio and expand our digital capabilities.

'I am proud of the creativity and adaptability of our people and their exemplary commitment to supporting our customers and communities. Our $100m global commitment to support the recovery of the hospitality sector has already reached around 30,000 outlets in seven countries.

'We expect ongoing volatility and disruption in the second half of the year, particularly in the on-trade channel, which will make performance more challenging. The medium and long-term growth drivers and opportunities for our business remain intact and I am confident in our strategy, the resilience of our business and Diageo’s ability to emerge stronger.'