Johnnie Walker-maker Diageo beats first-half sales estimates

Diageo, the world's largest spirits maker, bushed first-half income forecasts connected Thursday arsenic it raised prices and much radical drank premium spirits.

The London-based company, which makes Tanqueray gin, Captain Morgan's rum and Ketel One vodka, said nett income roseate 9.4% successful the six months to December 31, beating expert forecasts for a 7.9% rise.

The maturation reflected integrated measurement maturation of 1.8%, indicting 7.6 percent points of higher terms growth. Organic operating nett grew 10%.

"Every portion of the satellite had growth. The apical extremity of our portfolio, the apical 28%, the astir costly products, grew treble digit successful each portion of the world," Chief Executive Ivan Menezes told CNBC's "Squawk Box Europe."

"So the fundamentals with our user basal are strong. People are enjoying spirits much than ever and drinking better, not more."

The spirits marketplace has been resilient amid a planetary outgo of surviving crisis, that has different deed volumes astatine different user goods companies, with radical continuing to bargain what they see occasional treats for themselves adjacent arsenic they commercialized down to cheaper nutrient brands.

Diageo's "premium-plus" brands - which are much costly than brands specified arsenic Smirnoff vodka but nether astir 50 pounds ($61.92), drove 65% of its integrated nett income growth, the institution said.

"If you look astatine the consumer, the user is precise savvy," Menezes told CNBC. "There are outgo of surviving pressures, but the user is deciding wherever they privation to prevention and wherever they privation to dainty themselves. And we, fortunately, play successful an affordable luxury category."

Since the pandemic, Diageo has besides benefited from radical buying much costly types of intoxicant portion staying location nether lockdown. The institution and its rivals invested heavy successful selling and improving their products to capitalize connected newfound demand, focusing connected premium brands specified arsenic Bulleit Bourbon and Don Julio tequila.

The company, which said radical chiefly drank much tequila, scotch and Guinness, added it would instrumentality up to 500 cardinal pounds to shareholders — successful summation to its existing buyback committedness — this fiscal year. It raised its interim dividend by 5% to 30.83 pence per share.

Diageo besides said it was "confident" Chinese consumers would "return" arsenic Covid-19 infections autumn successful that country.

— CNBC'S Jenni Reid contributed to this report.