Member Article

Diageo’s buoyed by emerging markets

Emerging markets have supported the world’s leading drinks company, Diageo, as the “uneven” European economy caused sales to slip.

Diageo reported 6% growth in net sales, while emerging markets accounted for nearly 40% of business, which grew net sales by 5% and operating profit by 23%.

The makers of Baileys, Smirnoff Vodka and Guinness announced that strong sales of scotch in Russia and Eastern Europe drove double digit net sales, while expansion in Mey ?çki, Turkey, created an additional £320m of net sales and £82m operating profit to the company.

Paul S Walsh, Chief Executive, said the results gave Diageo a good position for the future. He commented: “Diageo is a strong business, getting stronger and the results we released this morning show that very clearly.

“We have enhanced our leading brand positions globally, through effective marketing and industry leading innovation and we have strengthened our routes to market.

“A year ago I set out our expectations for the medium term and these results put us firmly on track to meet those goals.

“Our confidence in the achievement of our medium term guidance is underscored by the 8% recommended increase in our final dividend.”

Diageo reported an increase of 8% in final dividend, and pre-exceptional items were up 13% to 94.2 pence per share.

This was posted in Bdaily's Members' News section by Miranda Dobson .