First-half earnings rise at Diageo

Diageo, the largest multinational beer, wine and spirits company in the world, has today reported a 15% increase in half-year earnings as it maintained its full-year target for underlying operating profit to rise by 9%.

Paul Walsh, chief executive, said this first-half performance demonstrates that our brands are well supported and our routes to market remain strong.

While we continue to watch for any impact that recent financial market volatility may have on broader trading conditions, we are maintaining our guidance for 9% organic operating profit growth for the current fiscal year, added Mr Walsh.

Johnnie Walker has delivered double-digit net sales growth as have Smirnoff and Captain Morgan. The performance of Guinness has also improved with net sales up 6% and share gains in Great Britain and Ireland.

The interim dividend was raised 5.2% to 13.2 pence.

Last month, the drinks company acquired Rosenblum Cellars, the Californian wine maker, in a deal worth £53million. Diageo said its target is to become the leading premium wine company in the US.

Diageo makes Gordon’s, Smirnoff and Johnnie Walker and has been steadily moving into wine and its brands include Blossom Hill, Piat D’Or, Baron Philippe and Sterling Vineyards.

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