Diageo sales jumped by 15% in the second half of 2021.
The group, who owns brands including Smirnoff vodka and Tanqueray gin, saw profits jump by 22.5% as consumers are buying more alcohol as they stay at home.
“The positive price/mix benefit was primarily driven by mix, reflecting the strong growth of premium plus brands, particularly in scotch, tequila and Chinese white spirits, as well as the continued recovery of the on-trade channel in Europe and North America and the partial recovery of Travel Retail,” said the group in a statement.
“There was also a price benefit, primarily from price increases in Latin America and Caribbean, Africa and North America.”
Richard Flood, an investment manager at Brewin Dolphin, commented on the results: “Diageo has produced a great set of results with a strong increase in sales, margin, and profits over the past six months.
“The continuing shift by consumers to spirits consumption has benefited the company, as this is a sector of the drinks market that it dominates.
“Diageo has been able to successfully navigate the challenges of Covid with its strong presence in both the off-trade, as well as the pubs sector – or on-trade – which is expected to recover further as Covid fades, leaving Diageo well positioned for the future.”