Irish Daily Mirror

Back in the black23

Stout ¤5.5bn profits made by Guinness

- BY NICOLA DONNELLY news@irishmirro­

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.”

 ?? ?? TOASTING Enjoying a Guinness
TOASTING Enjoying a Guinness

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