UK: North America, emerging markets stay strong for Diageo FY

• Full-year net profits leap by 25.2% to GBP2.59bn (US$3.96bn) on lower reported tax rate
• Net sales in the 12 months to the end of June increase by 6.2% to GBP11.43bn
• Operating profits rise by 8.6% to GBP3.43bn
• Reiterated medium-term guidance of 6% year-on-year sales lift

Diageo has hailed a strong performance from North America in its full-year, with emerging markets continuing to prop up Western Europe in the period.

The company said this morning (31 July) that net profits for the 12 months to the end of June came in at GBP2.59bn (US$3.96bn), a year-on-year rise of 25.2%. The marked increase was mainly due to a reduced reported tax rate for the year, down to 16.9% from 33.3% a year earlier.

Net sales in the period were up by 6.2% on a reported basis - by 5% in organic terms - to GBP11.43bn, while operating profits rose by 8.6% to GBP3.43bn.

Net sales in the North America region rose by 5% in the year, as the Africa, Eastern Europe & Turkey and Latin America & Caribbean regions both delivered double digit sales increases.

Sales in Western Europe continued to struggle, falling by 4%, while Asia Pacific could only deliver a 3% lift.

The full-year sales numbers are broadly in line with the state of play after the first nine months of Diageo's fiscal year.

In today's statement, new CEO Ivan Menezes confirmed that Diageo remains "on track to deliver our medium-term guidance". The company is targetting sales year-on-year sales growth of 6% 

Diageo's board has recommended a 9% increase in the final dividend to shareholders.

The firm's shares opened down slightly this morning, trading at GBP19.585 at 0820 BST.

To read the company's official statement, click here.