Spirits giant Diageo just released their 2018 earnings and it’s fair to say that the conglomerate had a very good year. The powerhouse producer reported that net sales for the year ended June 30th jumped 0.9% to £12.2 billion ($16 billion) and operating profit rose 3.7% to £3.7 billion ($4.85 billion).
Stockholders were happy to learn that earnings per share skyrocketed 9% to 118.6p.
“These results reflect the high performance culture we have created in Diageo, the ongoing rigorous execution of our strategy, our focus on the consumer and our ability to move swiftly on trends and insights,” Ivan Menezes, CEO of Diageo, stated during a video conference with investors. “The changes we have made in the business and the shifts in culture we continue to drive, ensure we are well placed to capture opportunities and deliver sustained growth.”
Driving the strong numbers were increases in sales for Guiness, gin (the boom is real!), and tequila, specifically Diageo’s Don Julio label. Shui Jing Fang, a premium baijiu added to the portfolio in 2011, recorded an astronomical jump of 50% in volume and 63% in sales.
Vodka was the big loser for the year. Smirnoff and Ciroc both dropped 2% in net sales. Reflecting generational preferences, OG whiskey J&B dropped 19% in net sales.
Diageo saw growth in every region. However, Asia Pacific continued to boom hard, leading the way with 9% increase in net sales and a whopping 19% rise in net profits.