Financial roundup

Diageo, Britvic and Greencore sales surge and Treatt orders rise

By Rod Addy contact

- Last updated on GMT

Diageo's premium brands such as Don Julia tequila did well
Diageo's premium brands such as Don Julia tequila did well

Related tags: Drinks, Finance

Diageo, Britvic and Greencore reported sales surges in their latest financial updates, while ingredients supplier Treatt claimed orders from customers had been very strong.

Scotch, tequila and beer and 'premium plus' brands drove sales up in Diageo's results for the six months ended 31 December 2021, although it reported growth across all categories.

Europe yielded the strongest organic volume growth (23%), with organic net value sales up 27%. 

Growth in the region was fuelled by the recovery of the on-trade, particularly in Britain, Southern Europe and Ireland, plus resilient consumer demand in the off-trade, where Diageo continued to gain market share.

Spirits net sales grew 24%, with broad-based growth across scotch, vodka, Baileys, gin, rum and raki. The success had been underpinned by the spirits category gaining share of total beverage alcohol and premiumisation, Diageo reported.

Net sales of beer grew 44%, driven by a strong increase in Guinness as on-trade restrictions eased in Ireland and Britain.

In the UK specifically there had been broad-based growth across vodka, driven by Smirnoff No.21 Red and the launch of Smirnoff Raspberry Crush, Baileys and rum, partially offset by a decline in gin. Ready to drink grew by more than a third, reflecting positive category momentum and innovation.

Diageo's interim performance at a glance

Net sales: +20% organic growth to €7.96bn versus the same period in 

Operating profit before exceptionals: +25% organic growth to €2.7bn

Britvic

At-home sales showed strong growth for Britvic in its first quarter (Q1) trading statement to 31 December, with the out-of-home market bouncing back from the impact of pandemic-related restrictions. Britain led the way, delivering revenue growth of 17.1% 

"With the announcement last week of the easing of restrictions across the UK and Ireland, we anticipate the out-of-home channel will continue its recovery back towards 2019 levels,"​ said Britvic chief executive Simon Litherland.

Britvic performance at a glance

Q1 total revenue +16.5% to £373.9m on a constant currency basis, versus the same period in the previous financial year.

Greencore Group

Substantial recovery in food-to-go sales boosted reported revenue growth at Greencore Group in the 13 weeks to 24 December 2021, compared to the previous year's first financial quarter (Q1).

Reported food-to-go sales rose by more than a third, while sales in other convenience categories increased by 8.5%.

The group said it was on track with its strategic capital investment programme of approximately £30m across three existing manufacturing sites, supporting the delivery of previously announced business wins. Revenue from those wins is expected to begin accruing in the second half of the current financial year.

The return to pre-COVID-19 production volumes had enabled the company to revitalise cost efficiency programmes across operational and commercial functions. Those programmes enabled it to best use capacity, enhance process engineering and make further progress with automation initiatives.

"I am encouraged by the progress that we have made during Q1 in what continued to be a challenging trading environment,"​ board director Gary Kennedy said. "We remain focused on rebuilding our economic model effectively and sustainably with all stakeholders, thereby positioning the company for a strong future."

Financial forecasts remained in line with expectations. The search continues for a replacement for chief executive Patrick Coveney, who announced last year he was stepping down.

Greencore Q1 performance at a glance

Reported group revenue: +24.4% to £389m versus the same period in the previous year.

Reported food-to-go revenue +34.9% to £254.3m

Reported revenue for other convenience categories: +8.5%

Treatt

Treatt, the natural extracts and ingredients supplier for the flavour, fragrance and multinational consumer product industries, particularly beverages reported its order book up strongly year-on-year in a trading update.

The business said it had continued to grow across multiple categories reflecting increasing investment in research & development and growing demand for healthier, natural products.

The move to its new UK headquarters at Skyliner Way, Bury St Edmunds was progressing as planned, promising substantial extra capacity in coming years to grow with enhanced efficiency and an emphasis on sustainability.

No figures were provided.

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