Diageo Fiscal Year 2023 Pretax Profit Rose; Backs Medium-Term Guidance

By Joe Hoppe

Diageo on Tuesday reported a rise in pretax profit for fiscal 2023, albeit slightly below market expectations, on strong organic net sales growth and price increases, and backed its guidance.

The alcoholic beverage company made a pretax profit of 4.74 billion pounds ($6.08 billion) for the year ended June 30, compared with GBP4.39 billion the previous year.

A consensus estimate taken from FactSet forecast Diageo's pretax profit at GBP5.06 billion.

Net sales rose to GBP17.11 billion from GBP15.45 billion a year earlier, reflecting organic volume contraction of 0.8% offset by a positive price mix of 7.3%. A consensus estimate, taken from FactSet expected net sales to come in at GBP17.22 billion.

Diageo reported organic net sales growth of 6.5%, above a consensus forecast of 6.4% taken from the company's website and reflecting organic volume contraction of 0.8% offset by a positive price mix of 7.3%.

The board declared a final dividend of 49.17 pence a share. This brings the total for the year up to 80.0 pence, from 76.18 pence in fiscal 2022.

The company backed its 2023-25 guidance for organic net sales growth of 5% to 7% a year and organic operating profit growth of 6% to 9% a year.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

August 01, 2023 02:37 ET (06:37 GMT)

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