Back in the black23
Stout ¤5.5bn profits made by Guinness
THE nation is back guzzling pints of Guinness – giving its maker a 18% profit to €5.5billion in the past year.
Spirits group Diageo saw Irish sales across its range increase by 71% – wiping out a Covid-related decline in 2021 and mostly driven by sales of the stout.
The huge profits are fuelled by the pub sector’s recovery and “resilient consumer demand” for off-sales.
The drinks giant’s preliminary year-end results yesterday showed sales up by 21% globally to €18.4billion. The Smirnoff and Gordon’s Gin maker said the figures reflect “strong double digit growth” across all regions, underpinned by industry trends including the
growth of premium spirits brands.
Europe, where Diageo’s net sales increased 26%, led the charge as pubs reopened. Spirits net sales grew 24%, Diageo said with “broadbased growth across scotch, vodka, Baileys, gin, rum and raki”.
Beer net sales grew 63%, following a 21% decline in Diageo’s 2021 financial year, “with strong growth in Guinness driven by the on-trade recovery in Ireland and the UK, as well as growth from innovation”. Diageo’s net sales in Ireland increased 71%, “lapping a significant decline” in 2021, the company said, and driven “by strong growth in Guinness” as pubs and bars reopened.
European sales of Guinness jumped 52% in the 12 months to the end of June.
The company, which announced plans in June to wind down its Russian operations, said its Eastern European sales were up 18%.
However, sales in Russia were down and Diageo took a £19million impairment charge over Smirnoff operations there.
Diageo chief Ivan Menzes said: “In a year of significant global supply chain disruption, our double-digit volume growth demonstrates the tremendous agility and resourcefulness of our teams.”