Profit before tax ticked up 8 percent to £2.93 billion from the previous year. Diageo announced in its earnings release that it would acquire the remaining 50 percent stake in premium tequila brand Don Julio. In North America, this tequila saw a 5 percent rise in volume.
Despite the flat overall sales for the group, Diageo’s chief executive was bullish on the outlook for next year, saying the FTSE 100-listed company had “never been fitter.”
“In the results you’ve seen we’ve had strong cash flow, we kept the dividend growth at 9 percent reflecting our confidence in the business, expanded operating margins, we’ve grown market share,” Menezes said.
“As we look forward I am confident about strong and sustained growth and that’s why we’ve put in our outlook that fiscal (year 20)16 will be stronger than fiscal 15 and as we get into fiscal 17, this business has the runway to deliver mid-single digit growth, good margin expansion, good cash conversion, and continue to do that in a sustained way.”