Diageo says annual profits fizz higher
[LONDON] Diageo, the British maker of alcoholic drinks including Guinness stout, said Thursday that annual profits soared more than a fifth, aided partly by the pound weakening on Brexit uncertainty.
Profit after tax climbed 21 per cent to £2.7 billion (S$4.785 billion) in the group's financial year to the end of June, compared with 2015/2016, Diageo announced in a results statement.
Sales rose 15 per cent to £12.1 billion, helped by favourable exchange rate moves.
Despite benefitting from the weak pound, the group did highlight uncertainty surrounding Brexit - with Britain's EU departure set for March 2019 - as a key risk to the outlook.
"We delivered a strong set of results," chief executive Ivan Menezes said in the earnings release.
"Our performance demonstrates the effective delivery of our strategy. We have delivered consistent strong performance improvement across all regions and I am pleased with progress in our focus areas of US spirits, scotch and India."
Last month, the London-listed drinks giant snapped up Casamigos, an upscale tequila brand co-founded by Hollywood star George Clooney, in a deal potentially worth US$1 billion.
Casamigos is the fastest-growing so-called "super-premium" tequila brand in the United States, according to the company.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Restaurant Brands tops estimates as Burger King overhaul pays off
Walmart to shut all health centers in US over lack of profitability
Coca-Cola raises annual sales forecast on global demand, higher prices
Dying salmon trouble Norway’s vast fish-farm industry
Fast-fashion giant Shein wants to sell skincare, toothpaste and toys, too
Billionaire Geiger is said to near US$7 billion L’Occitane buyout