Diageo raises a glass after profits increase to £2.2bn
Shares in Diageo rose by almost 2% on the London Stock Exchange after the company announced that its operating profit rose by over 6% to £2.2bn in the six months to December 31, 2017.
The performance was driven by strong organic growth, with organic operating profit increasing by 6.7%, as higher marketing investment was offset by efficiencies from its productivity, Diageo said.
Net sales were £6.5bn, an increase of 1.7%, with all regions contributing to the company's sales growth. In Europe, net sales rose by 4%.
Ivan Menezes, chief executive of Diageo, said: "We have delivered broad-based improvement in both organic volume and net sales growth."
Growth was broad-based across all key categories, but primarily driven by gin, where the Tanqueray brand gained share in a growing category and the Gordon's brand benefited from the launch of its Pink variant.
Meanwhile, sales of Guinness were up 4% in Europe.
In the company's North American market net sales increased by 2% on the back of a strong performance from spirits.