Diageo has said today (25 January) its 'strong performance reflects consistent and rigorous execution of its strategy', according to its 2018 Interim Results, half year ended 31 December 2017.
The world's largest distiller's reported net sales (£6.5 billion) and operating profit (£2.2 billion) were up 1.7% and 6.1%, respectively, 'as organic growth was partially offset by adverse exchange.'
“These results demonstrate continued positive momentum from the consistent and rigorous execution of our strategy. We have delivered broad based improvement in both organic volume and net sales growth.” Ivan Menezes, chief executive, commenting on the results said.
All regions reportedly contributed to broad based organic net sales growth, up 4.2%, and organic volume grew 1.8%.
The report highlighted that its organic operating profit grew 6.7%, ahead of top line growth, as higher marketing investment was more than offset by efficiencies from its productivity programme.
“We have increased investment behind our brands and expanded organic operating margin through our sustained focus on driving efficiency and effectiveness across the business.” Menezes added.
The Guinness maker's cash flow continued to be strong and in line with last year, with net cash from operating activities at £1.2 billion and free cash flow at £1 billion.
Menezes said that the groups financial performance expectations for this year remain unchanged.
He added: “We are confident in our ability to deliver consistent mid-single digit top line growth and 175bps of organic operating margin improvement in the three years ending 30 June 2019.”
© 2018 - Checkout Magazine by Donna Ahern