The global drinks corporation Diageo recently announced their preliminary results for fiscal year 2018 — including +5% in organic net global sales.
The reported net sales of $16.1 billion were lower at +0.9%, however, due to poor currency exchange rates.
Diageo turned an operating profit $4.65 billion in FY2018.
“Diageo has delivered another year of strong, consistent performance,” says CEO Ivan Menezes in a press release. “Organic volume and net sales growth is broad based across regions and categories. We have expanded organic operating margin while increasing investment behind our brands ahead of organic net sales growth.”
Diageo’s tequila brands grew 40% on the back of double-digit growth for Don Julio, along with the recent acquisition of Casamigos Tequila.
Vodka did not perform as well. Smirnoff was down 2%, Ketel One slipped 1%, while Cîroc was -2%.
Menezes attributes the overall growth to an “ongoing rigorous execution of our strategy, our focus on the consumer and our ability to move swiftly on trends and insights.”
“The changes we have made in the business and the shifts in culture we continue to drive, ensure we are well placed to capture opportunities and deliver sustained growth,” he adds. “Our financial performance expectations are unchanged and we expect to continue to invest in the business to deliver our mid-term guidance of consistent mid-single digit organic net sales growth and 175bps of organic operating margin expansion for the three years ending 30 June 2019.”
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Author: Kyle Swartz