UK: Allied profits up in "uncertain" conditions
The company's sales increased 2.3% to £3.4 billion, while total spirits and wine volumes and net turnover increased by 8% and 7% respectively.
Philip Bowman, chief executive, said: "These results demonstrate the resilience of Allied Domecq's performance internationally. We have delivered increased profits, strong brand growth and excellent cash generation across the business after dealing with the pension and foreign exchange issues we reported in the first half and the economic uncertainty created by the Iraq war and the SARS virus. At constant currencies, earnings per share grew 9%. Excluding pension costs and foreign exchange, underlying profits grew by 20%.
"Our premium wine brands have performed strongly and are on track to deliver the targeted return on investment. Our strategy based around geographical and varietal diversity, brand laddering and economies in procurement has shielded us from the difficult year experienced by most other wine companies.
However, looking forward Bowman warned that there were "continued uncertainties in the world economy and the Eurozone remains difficult."
And by late morning, Allied's shares had fallen nearly 4% to 385-3/4 pence.
In particular, there were concerns about a slowdown in volume growth, which when acquisitions are excluded reached only 1%, compared to 4% at the half year stage.
But despite the difficult trading, Bowman said: "We are confident, however, that our business is well positioned to meet the challenges. Early indications are that the 2004 financial year has started well and we are on track to meet current expectations."
As Pernod Ricard, Allied Domecq and Fortune Brands close in on the biggest drinks industry deal since the sale of Seagram, opinion about how the deal will be structured and who stands to win and lose ...
Cautious optimism is probably the best way to describe today's press reaction to Pernod's friendly bid for Allied Domecq....
Spirits firm Allied Domecq has agreed to a takeover bid from smaller rival Pernod Ricard, subject to agreement from Allied shareholders....
Allied Domecq last night accepted Pernod Ricard's offer to buy the UK-based drinks giant....
Allied Domecq today delivered a 7% increase in first half group profits before tax to £285m. Earnings per share were up 7% to 19.2p, turnover that was flat at £1,700m....
Drinks producer and distributor Todhunter International has said that its controlling shareholder, CL Financial, is interested in acquiring some of the brands of Allied Domecq that may become availabl...
Pernod Ricard has had its rating raised....
Allied Domecq has added a new flavour to its Malibu range. The company said yesterday that it would be launching Malibu Passion Fruit in the US from April 15....
- The end is nigh for Global Travel Retail - Comment
- Five ways small brands can beat big players
- Interview, Bulldog Gin founder Anshuman Vohra
- Pernod Ricard's Q1 results - Preview
- Pernod Ricard Q1 2017 results by region, brand
- Diageo most at risk to Thai alcohol ban - analyst
- Jobs at new India hub won't affect staff - Diageo
- Stumbling UK Pound prompts Conviviality price hike
- US craft spirits could be as big as craft beer
- AB InBev fund ZX Ventures buys homebrew co
- Global gin insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global Wine Market 2016-2020
- Global RTD insights - market forecasts, product innovation and consumer trends