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Diageo Shares Slide With Weakened European Position

Published on Feb 16 2011 10:44 AM in Drinks

Diageo Shares Slide With Weakened European Position

Diageo shares dipped by 5 per cent on Thursday illustrating investors' disappointment at the announcement of the drinks giant's half-year results. The maker of Smirnoff Ice and Guinness reported that sales were down by 2 per cent in Europe for the six months ended December 31st. However, a net profit of £1.19 billion  was reported by the drinks company compared with £1.02 billion a year earlier. The company’s revenue rose 2 per cent to £5.3 billion.

While its European operations proved disappointing, Diageo’s sales volume rose by 2 per cent in North America, 8 per cent in the Asia Pacific region with other international markets providing a 9 per cent gain. “Despite the economic weakness in much of Europe, our first half performance gives me increased confidence that we will improve on the organic operating profit growth we delivered in fiscal 2010,” said the group's Chief Executive Officer Paul Walsh. (Feb 16)

© 2011 - ESM: European Supermarket Magazine

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