Diageo says interim profits leap 61% pct

LONDON - Agence France Presse

A man walks past a a building in the Diageo facility is seen. The world’s largest alcholic drinks producer’s semi-annual profit increases by 61 pct.

Diageo, the world’s biggest producer of alcoholic drinks, said on Jan. 30 that net profits soared 61 percent in the first half of its financial year, boosted by strong sales in emerging markets and the United States.
 
Earnings after taxation surged to 1.538 billion ($2.432 billion, 1.794 billion euros) in the six months to December 31, compared with 953 million in the same part of 2011, Diageo said in a results statement.
 
The group, which makes of Guinness stout, added that total sales increased by five percent to 6.04 billion, helped by keen demand for premium spirits in North America during the crucial holiday season.
 
“These results reflect the global strength of our strategic brands, our leadership in the US spirits market and our increasing presence in the fastest growing markets of the world,” said Diageo Chief Executive Paul S Walsh.
 
“Our expanding reach to emerging middle class consumers in faster growing markets was the key driver of our volume growth, while net sales growth was driven by our pricing strategy and premiumisation, especially in the US,” he said, stressing that this drove gross margin expansion, which together with their continued focus on operating efficiencies, delivered operating margin improvement.

The British brewing giant, which produces Johnnie Walker whisky and Smirnoff vodka, has meanwhile boosted its presence in emerging markets with recent acquisitions in Brazil, China, India and Turkey.
The company owns Turkey’s Mey İçki, the leading rakı firm.