Diageo Organic Sales Blow Past Estimates on Strong U.S Demand

Organic net sales, which excludes the impact of acquisitions and foreign exchange, rose 20% in North America, the company’s biggest market, where consumers traded up to more premium spirits including Tequilas and higher-end versions of Johnnie Walker Scotch whiskey.

Turkey and Northern Europe also contributed to the strong performance, with sales growing more than 20%, driven by demand for scotch whiskies.

Organic net sales in Africa rose 20%, fueled by Guinness and spirits such as Smirnoff vodka.

Overall, organic net sales rose 16% for the year ended June 30, higher than the 13.7% analysts had expected, according to company-supplied estimates.

The maker of Tanqueray Gin also said it expects the organic net sales momentum to continue into fiscal 2022, but with some “near-term volatility”.

The company sees travel retail remaining under pressure.

(Reporting by Siddharth Cavale in Bengaluru; Editing by Sriraj Kalluvila)