Monday 23 October 2017

Guinness sales rise 5pc as Diageo's operating profits slump on exchange rates

Pint of Guinness
Pint of Guinness
Michael Cogley

Michael Cogley

Diageo, the company that owns Guinness, has reported a fall of £122m in its operating profits in the six month period ending December 31.

In the company's interim results, released to the Irish Stock Exchange this morning, reported a significant fall in operating profits, despite the fact that organic net sales grew by 1.8pc.

However, the firm says that its operating profits fell due to adverse exchange and the sale of non-core assets. It said that organic operating profit was up 2.4pc.

Meanwhile Guinness proved to be a strong performer for the brand with sales growth of 5pc overall as well as significant growth in Nigeria, Kenya, and the UK.

Speaking about the growth of the Irish stout, country manager for Diageo in Ireland, Oliver Loomes, said: "In Ireland Guinness performance accelerated with net sales up 5pc. Guinness grew 2.1pc in volume in Republic of Ireland, with growth of 7.9pc in the off trade and 1.4pc in the on trade.

"Our Guinness volume share is now at 34.5pc in the on trade in the Republic of Ireland which means more than one in every three pints sold in the pub is a Guinness brand," Mr Loomes said.

Speaking about the group's overall performance chief executive Ivan Menezes said: "We have delivered volume growth, a stronger top line, improved the performance of our key brands, driven cost productivity and continued to generate strong cash flow.

"While trading conditions remain challenging in some markets, Diageo's brands, capabilities in marketing and innovation and our route to consumer have proved resilient. I am confident that Diageo can deliver improved, sustained performance," he said.

Online Editors

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