The price/mix growth was 11.1 percentage points, reflecting positive mix from strong performance in super- premium-plus brands, and mid-single digit price growth driven by price increases across all regions, according to a press release sent to the Budapest Business Journal.
The company reported an operating profit of GBP 4.4 billion, up 18.2%, primarily driven by organic operating profit growth. Reported operating margin decreased 77 bps, with organic margin expansion more than offset by exceptional operating items of GBP 388 million.
Diageo's organic operating profit grew 26.3%, with growth across all regions. Organic operating margin increased 121 bps, reflecting a strong recovery in gross margin and leverage on operating costs while increasing marketing investment.
The company says that growth was broad-based across categories, with particularly strong growth in scotch, tequila, and beer.
Premium-plus brands contributed 57% of reported net sales and drove 71% of Diageo's organic net sales growth. Off-trade market share grew or held in over 85% of total net sales value in measured markets.
Diageo chief executive Ivan Menezes says, “I am very pleased with our fiscal 22 results. We delivered double-digit organic net sales growth across all regions and we gained or held off-trade market share in over 85% of our total net sales value in measured markets. We expanded operating margin while increasing marketing investment ahead of net sales growth and we used our strong cash generation to invest in long-term growth. I am very proud of what my 28,000 colleagues have achieved through their energy and creativity."
"Looking ahead to fiscal 23, we expect the operating environment to be challenging, with ongoing volatility related to COVID-19, significant cost inflation, a potential weakening of consumer spending power and global geopolitical and macroeconomic uncertainty. Notwithstanding these factors, I am confident in the resilience of our business and our ability to navigate these headwinds," he adds.
Diageo has been present in Hungary for 17 years. Its portfolio includes prominent brands such as Johnnie Walker, Smirnoff, Baileys, Captain Morgan, Tanqueray, and Guinness.
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