Guinness maker Diageo's profits rise but sales flatline
Pre-tax profits at Irish-listed drinks giant Diageo rose by 8pc but organic sales stagnated in the year to the end of June.
The company’s full year results show that net sales were up by 5pc to £10.8bn, while operating profit increased by 3pc higher to £2.8bn.
However, organic sales were flat in the period although pre-tax profit was a better than expected £2.9bn, ending two years of declines.
In Ireland sales of Guinness rose by 2pc while net sales in spirits were down 2pc. The firm said that this was due to last year’s duty increase.
Chief executive Ivan Menezes said: “Stronger volume growth will deliver an improved top-line performance”.
“Diageo has an enviable position, by geography, by brand and by category range, in an attractive consumer market place with strong long term growth drivers.
He added: “This year we made further changes to build strong, sustained performance including embedding our sell out discipline, improving cash conversion and strengthening our route to consumer.
“We have consistently applied a long term perspective in making these changes, despite the short term challenges we have faced from an external environment where currency volatility continues to impact the emerging market consumer.”