The world’s largest drinks producer reported a 4.3% net global sales increase for the fiscal year ending June 30, 2017.
The reported net sales ($15.8 billion) and operating profit (4.7 billion) were up 15% and 25%, respectively, the company reports, reflecting “favourable exchange and accelerated organic growth.”
“Our performance demonstrates the effective delivery of our strategy through disciplined execution of our six priorities put in place four years ago.” says Ivan Menezes, chief executive. “We have delivered consistent strong performance improvement across all regions and I am pleased with progress in our focus areas of U.S. Spirits, scotch and India.
“Our productivity work is delivering ahead of expectations allowing us to reinvest in our brands, drive margin improvement and generate consistent strong cash flow,” he adds. “Through productivity we have embedded an everyday efficiency mind set in the business and with improved data and insight we are making faster, smarter decisions on investment choices. ”
Diageo most recently made news with it’s $1 billion-purchase of George Clooney’s Casamigos Tequila brand.
“Diageo is a strong company today and we are confident in our ability to deliver sustainable growth,” Menezes says. “We are raising our productivity goal to £700 million with two thirds being reinvested in the business. We continue to expect mid-single digit top line growth, and we are raising our operating margin expansion objective to 175bps over the three years ending 30 June 2019.”