Four the magic number for Diageo as sales rise again in H1 2018 - results

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  • Sales in half-year rise 4.2% in organic terms, to GBP6.53bn (US$9.22bn)
  • Reported sales in six months to end of December up 1.7%
  • Volumes in first six months of fiscal-2018 increase by 1.8%
  • Sales growth coming from all Diageo's regions in the period

Diageo's Half Year fiscal-2018 - results data

Diageo has retained its mid-single-digit rate of sales increases in the first half of its fiscal-2018, with currency fluctuations hindering the group's rate of growth on a reported basis.

Diageos half-year sales were up across all the groups regions

Diageo's half-year sales were up across all the group's regions

In the company's results for the six months to the end of December, announced today, sales on an organic basis increased by 4.2% year-on-year. In reported terms, however, sales were up by a more modest 1.7%. The company blamed "unfavourable exchange" for the slower rise in reported sales, although the group was cycling a year-prior first half that was aided by the devaluation of the pound following the UK's EU Referendum in June 2016.

The 4% organic increase follows fiscal-2017's 4.3% lift and 4% rise in the first six months of Diageo's previous financial year.

On a by-region basis, Diageo posted sales increases across the board, led by Latin America & Caribbean and Asia Pacific - both rising by 7% in organic terms. Indeed, Asia Pacific's value performance came despite a 1% dip in volumes. Elsewhere, Europe & Turkey delivered a 4% lift, with North America and Africa both up 2% in the half-year.

Turning to the bottom line, and operating profits were up by almost 7% thanks in part to "efficiencies from our productivity programme".

"Diageo continues to get stronger," said CEO Ivan Menezes today. "We have better consumer insight through superior analytics, improved execution on brand and commercial plans and have embedded everyday efficiency across the business through our productivity initiatives. This has enabled continued growth, improved agility, and consistent cash flow generation."

Looking forward Menezes said he is "confident" that the mid-term target of mid-single-digit sales growth to the three years to the end of June 2019 remains in sight.

The group is holding a press conference in London later today.

Diageo performance trends 2013-2017 - results data

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