Diageo, the world's biggest drinks maker, has reported pre-tax profits of £2.24 billion in the year to the end of June—an increase of 12 per cent.
Overall sales at the firm, whose brands include Smirnoff, Guinness and Johnnie Walker, grew by five per cent to £9.9 billion.
London-based Diageo said developing markets had offset weaker demand in western Europe and the US, with strong growth in Latin America, Africa and Asia—regions that generate about one third of the group’s earnings. The group has a large Scotch business in South America, a growing beer business in Africa and a presence in China.
About 34 per cent of Diageo’s sales are in North America and more than a quarter from Europe.
It also said its exposure to a wide range of markets positioned it strongly for future growth.
Commenting on the results, Paul Walsh, chief executive of Diageo, said: “As expected this has been a year of challenges and opportunities. Our performance was much stronger in the second half than in the first: our performance in the developing markets drove overall growth while markets in North America and Europe remained weak.
“However, even though markets and categories have been affected in different ways and to differing degrees, we have been consistent in our focus to deliver growth and build a stronger business for the future.”
He concluded: “The impact of the global economic crisis varied by market and the strength of the recovery appears to be equally variable. However, as we demonstrated this year, the global diversity of our business, together with the strength and range of our brands and the agility we have demonstrated gives us confidence that in fiscal 2011 we will be able to improve on the organic operating profit growth we have delivered this year.”
Trading in approximately 180 markets, Diageo employs over 20,000 people around the world. With offices in 80 countries, it also has manufacturing facilities across the globe including in the UK, Ireland, the US, Canada, Spain, Italy, Africa, Latin America, Australia, India and the Caribbean.
