Diageo confident despite flat global preliminary results
Diageo has seen "sustainable growth with less volatility" despite flat results for the year ending 30 June 2015, CEO Ivan Menezes has said.
Results released this morning show that Diageo has achieved net sales of 5%. However, according to Deirdre Mahlan, chief financial officer for the global drinks company, this is a flat net sales growth organically, with only a 0.2% increase in operating margins.
Free cash flow for the year was recorded at £2b with the sale of Bushmills and Gleneagles generating a further £0.5b and a final dividend up to 9%.
Andrew Cowan, country director at Diageo Great Britain, said: "The last twelve months have seen Great Britain continue to grow with net sales increasing by 3% and spirits, beer, and ready-to-drink all in growth. This is a result of getting Guinness back into growth, driving our premium core spirits portfolio, developing a profitable innovation pipeline and increasing the size of our reserve business and our range of luxury products.
"Guinness net sales were up 2%, driven by the success of ‘The Brewers Project' with innovations such as West Indies and Dublin Porters and Guinness Golden Ale.
"The reserve portfolio in Great Britain grew 43%, driven by Cîroc, which nearly doubled in size and rapidly gained share from the market leader. Tanqueray gin saw strong double digit growth in Great Britain, with sales of Tanqueray No. Ten up 82.9% in the country.
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