Diageo, the world’s largest alcoholic drinks maker, reported pre-tax profits up 5.3 per cent for the first six months of the year as UK drinkers returned to Guinness and Americans consumed more spirits.
In the six months to December 31, 2007, profits grew from £1.2 billion to £1.3 billion on sales up 7 per cent to £4.2 billion, as Paul Walsh, the chief executive of Diageo, said that Guinness had returned to growth in the UK and Ireland, up 6 per cent.
Sales in America rose 7 per cent while the wider international market was boosted by demand in the African beer market and the “continued growth of Scotch” in Latin America, South Africa and the Middle East.
The company’s Johnnie Walker brand continued to perform well, delivering double-digit sales growth, as did Smirnoff and Captain Morgan, Diageo’s rum brand.
Diageo bowed out of the auction for Absolut vodka this month, opting instead for a $900 million (£457 million) deal for a half-stake in the Dutch vodka Ketel One.
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The brand will complement Diageo’s existing Smirnoff and Ciroc vodkas.