Guinness owner Diageo beats market expectations with £9.4 billion sales
Guinness, Tanqueray gin and Smirnoff vodka owner Diageo posted an 18.4% rise in revenue to £9.4 billion in the six months to the end of 2022, with organic growth of 9.7%.
That was substantially ahead of the £9.1 billion in sales and 8.1% organic growth pencilled-in by City analysts.
Joshua Warner, Market Analyst at City Index, said: “Diageo has given investors reasons to cheers this morning. Volumes grew less than anticipated at just 1.8%, but higher prices and a strong performance from its premium brands allowed sales to grow at a much faster pace.”
“Diageo’s business is some 36% larger now than it was before the pandemic started, but its share price is trading just 18% higher – although its valuation still demands a premium over the wider market.”
Jet2 profits boosted by strong holiday demand
Holidays business Jet2 today said winter booking trends continued to strengthen, meaning it now expects to exceed market expectations for profits in the year to 31 March.
As well as its planes flying with average load factors slightly better than the pre-pandemic level in winter 2018/19, Jet2 said its pricing and margins were significantly higher.
It added that forward bookings for the summer are encouraging, with the mix of package holiday customers representing approximately 77% of the total departures and one percentage point higher than summer 2022.
Average load factors for summer 2023 are also one percentage point ahead, with pricing strong and margins encouraging as Jet2 said “customers’ eagerness to take their much valued and anticipated holidays remains high”.
Offsetting the encouraging demand trends, the group said it faces cost pressures including fuel, carbon, a strengthened US dollar and wage increases.
