Profits at global drinks giant Diageo fell by almost 50% to £2.1bn in the year to the end of June, as the impact of Covid-19 was felt globally.
Sales dived down affected by the closure of pubs, bars, nightclubs and restaurants forcing Diageo to write down the value of its brand portfolio by £1.3 billion.
Ivan Menezes, CEO, Diageo stated that the business moved swiftly in prioritising sales directly to consumers via internet retailing including targeted sales campaigns with Amazon.
In a company statement Menezes went on to say that internet sales currently only make up a small share of Diageo revenues, adding that internet sales had doubled in the second half of the year.
Revenues in the US however were remarkably robust being down only 1%, this is partly due to only 20% of Diageo’s US sales being through hospitality venues like restaurants.
All things considered, especially against other giants of hospitality like Accor who today reported a first half 2020 loss of €1.5 billion, Diageo’s does seem like a good result.