UK: Diageo issues buoyant trading update
Diageo has today (29 June) said it expects annual profits to be up 7% after seeing its global flagship brands drive sales during the second half of the year.
The UK drinks giant issued a trading statement in advance of the publication of its full-year results at the end of August. Diageo said organic operating profit was set to rise 7% with net sales up 6%.
Diageo CEO Paul Walsh said: "We have successfully delivered on our objectives. We are building a superior position in North America, investing strongly behind our brands in International and continuing to reduce costs in Europe. As our excellent top line growth shows, we are gaining share in many markets."
The company saw "double-digit" sales growth from its "major hubs" internationally, including Latin America, Africa and Asia, but said it was Latin America that was "the key driver" of growth outside of North America and Europe.
Diageo warned that European markets remained "subdued" and blamed increased regulation on the continent for hitting alcohol sales. The picture in Europe remains mixed for Diageo with a slowdown in Spain's Scotch whisky market and problems with the introduction of a new duty regime in Russia offsetting gains made by Guinness in the UK and J&B Scotch in France.
However, Diageo saw buoyant performances across its business in North America as consumers continued to demand more premium products.
India's UB Group looks to be closing in on the acquisition of UK spirits group Whyte & Mackay after months of negotiations....
Diageo has calmed press reports suggesting it is keen to expand its wine portfolio. The UK-based drinks giant said today (18 December) that reports suggesting that it will focus more specifically on t...
Polmos Lublin has warned that its profits for this year will come in below its initial forecasts....
Russian Standard has snapped up the Internet domain name vodka.com for US$3m....
The Swedish government has confirmed that it is planning to sell off V&S Group, the owner of Absolut vodka. The centre-right government, which came to power in September, officially announced today (1...
Beam Global Spirits & Wine has made its first foray into the Indian Made Foreign Liquor segment with the launch of a whisky brand called DYC. The US-based group is the latest multinational to enter th...
V&S Group looks ready to close a production site in Sweden as it looks to cut costs throughout its business in the Nordic region....
Centerra Wine Company has unveiled a new drink which combines brandy, vodka and vanilla....
- Six key trends for alcoholic drinks in 2016
- Aus wine industry pays price for past failures
- What's in store for Super Bowl 50 - Focus
- Ten things to know about spirits in the US
- Will value-sharing in Travel Retail become reality
- William Grant & Sons restructures US team
- Diageo's Orphan Barrel The Gifted Horse - NPD
- SABMiller hits back in UK corporation tax row
- American rye whiskey sales leap 600% in five years
- Diageo's Oban Little Bay single malt Scotch - NPD
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global Whiskey Market 2016-2020
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research