Company Trend Analysis - Diageo Delivers Strong FY17 - OCT 2017


BMI View: Diageo delivered a strong performance in FY17 (ending on June 30), with reported revenue (GBP12.1bn) and operating profit (GBP3.6bn) up 15% y-o-y and 25% y-o-y respectively. With the exception of vodka, Diageo ' s entire product portfolio posted positive organic sales growth figures, with tequila and North American whiskey the outperforming segments.

Diageo delivered a strong performance in FY17 (ending on June 30), with reported revenue (GBP12.1bn) and operating profit (GBP3.6bn) up 15% y-o-y and 25% y-o-y respectively. This was driven by a combination of favourable currency swings, on the back of the weak sterling and a broad-based acceleration in organic growth across all regions. On an organic basis, sales grew by 4.3% y-o-y and volumes rose by 1.1% y-o-y. With the exception of vodka, Diageo's entire product portfolio posted positive organic sales growth figures, with tequila and North American whiskey the outperforming segments.

Most beneficial for Diageo is that its largest market, North America, recorded an organic net sales rise of 3% compared to the same period last year. The group also saw an increase of 11% organic sales growth in Latin America, supported by an ongoing economic recovery across key markets in the region, and solid results in the challenging Europe region (+5%).

Recovery Strengthens In FY2017
Diageo - Revenues (GBPbn) & Organic Sales Growth (% y-o-y)
Source: BMI

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