Diageo, the alcoholic beverage company, has announced a pretax profit of £4.74 billion ($6.08 billion) for the fiscal year ending June 30, 2023. This marks an increase from the previous year's profit of £4.39 billion, although it falls slightly short of market expectations.

Strong Organic Net Sales Growth

One of the factors contributing to Diageo's profit growth is the strong organic net sales growth and price increases. Net sales for the year reached £17.11 billion, up from £15.45 billion the previous year. This increase was driven by a positive price mix of 7.3%, which offset a slight contraction in organic volume of 0.8%.

Exceeding Forecasts

Diageo's organic net sales growth of 6.5% exceeded the consensus forecast of 6.4% taken from the company's website. This growth is attributed to the positive price mix, which more than compensated for the slight contraction in volume. The FactSet estimate for net sales was projected to be £17.22 billion.

Dividend Declaration

The board of directors declared a final dividend of 49.17 pence per share, resulting in a total dividend for the year of 80.0 pence. This is an increase from the previous year's dividend of 76.18 pence in fiscal 2022.

Guidance for Future Growth

Diageo has maintained its guidance for the period of 2023-2025, aiming for organic net sales growth between 5% and 7% annually, as well as organic operating profit growth between 6% and 9% annually.

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