Liquor and beer group Diageo‘s profit and turnover grew in the first half of its broken fiscal year, thanks to higher prices and a weaker British pound.
Better than expected
British liquor concern Diageo has plenty of well-known brands, like Smirnoff (vodka), Johnnie Walker (whisky) and Guinness (beer) and they have helped to break loose from the slower growth pace the company experienced over the past few years. Over the last 6 months, both its turnover and profit autonomously grew nearly 4.5 % to 6.4 billion pounds (7.5 billion euro) and 2.1 billion pounds (nearly 2.5 billion euro) respectively.
Including exchange rate fluctuations, the increase is simply astounding: turnover grew 14.( % and operational profit an overwhelming 28 %. The weaker pound, following the Brexit vote, was a major contributor because Diageo generates most of its turnover in other currencies, namely euro and dollar.
Diageo CEO, Ivan Menezes, highlighted the company’s liquor portfolio’s American performance during his notes and immediately confirmed his company’s long-term goals: a “consistent 4 to 6 % growth” and a 1 % profit margin improvement by the summer of 2019.
