Drinks giant Diageo logs rising annual profits

LONDON - Agence France-Presse

An employee controls the brewing process on a computer at the brewing house of the Feldschloesschen Brauerei brewery in Rheinfelden. REUTERS photo

Diageo, the world's biggest producer of alcoholic drinks, posted today rising annual net profits on the back of rapid emerging markets growth and the recovering U.S. spirits market.
 
Earnings after taxation gained two percent to £1.94 billion (2.46 billion euros, $3.09 billion) in the group's 2011/2012 financial year to June, compared with £1.90 billion last time around, Diageo said in a results statement.
 
"Diageo is a strong business, getting stronger and the results we released this morning show that very clearly," said chief executive Paul Walsh.
 
"We have increased our presence in the faster growing markets of the world, through both acquisitions and strong organic growth." The maker of Guinness stout added that total revenues swelled by eight percent to £10.76 billion.
 
The British brewing giant, which produces Johnnie Walker whisky and Smirnoff vodka, was boosted by the purchases of Turkish spirits group Mey İçki and Ethiopian brewer Meta Abo.
 
Operating profit before exceptional items, meanwhile, increased by 11 percent to £3.2 billion. That beat market expectations of £3.18 billion, according to analysts polled by Dow Jones Newswires.
 
Diageo employs 20,000 people in 80 countries around the world, of which 4,000 are in Scotland. Almost 40 percent of the group's business is in emerging markets.
 
The London-based British brewing giant also makes Baileys liqueur, Captain Morgan rum and Tanqueray gin.