Diageo Plc shares rose after the world’s largest distiller said consumers remain resilient and that it’s been able to pass along price increases to customers.
The maker of Johnnie Walker whiskey and Smirnoff vodka reported a 6.5% sales increase on an organic basis for the past year, just ahead of analysts’ estimates. It reiterated its guidance for the coming year.
The stock rose as much as 2.7% in London, rebounding from early declines.
While volumes fell in the second half, particularly in the US, there are signs of improvement in North America and other regions remained strong.
“The company states that demand is normalising and that inventory levels at distributors are now back to normal levels there,” said Alicia Forry, an analyst at Investec Securities. “All other regions delivered solid growth over the full year, and Europe even accelerated sales growth in the second half.”
Debra Crew took over as chief executive officer at the distiller in June after the death of Ivan Menezes accelerated her ascension to the top job. Menezes joined Diageo when it was created in 1997 and transformed it into the world’s biggest premium drinks company.
The company maintained its organic sales guidance of between 5% and 7% and operating profit growth in the range of 6% and 9%. The company also said it was switching its reporting currency to the US dollar from July 1.
Read More: Former Diageo CEO Ivan Menezes Dies After Brief Illness
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