Ireland: Diageo records a jump in annual sales
Guinness maker Diageo recorded a jump in annual sales as drinkers returned to bars post-pandemic and predicts further growth despite inflation.
The beverage company did not rule out putting up prices in future to offset the impact of inflation and said it will also heavily invest in marketing resources.
"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,” said Diageo chief executive Ivan Menezes in a statement.
“Notwithstanding these factors, I am confident in the resilience of our business and our ability to navigate these headwinds,” he said.
Pubs reportedly said the average price of a pint of Guinness was around €4.80 last year. However, Guinness drinkers in more densely crowded tourist hotspots, like Temple Bar, are now expected to pay nearly €8 for a pint.
Guinness grew strongly last year, prior to the soaring inflation, as net sales increased 52%.
Ireland net sales increased 71%, lapping a significant decline last year, driven by strong growth in Guinness, said Diageo.
Overall, beer grew 25%, primarily due to the strong recovery of Guinness, up 32%, driven by Ireland and Great Britain as on-trade restrictions eased, as well as double-digit growth in Africa.
The company also recorded double digit figure growth ready to drink pre-mixed cans of spirits.
The company reported total net sales of over £15bn (€18bn), up 21%, and posted operating profit of over £4bn (€5bn), up 18%.
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