Diageo group posts 24% rise in earnings

Alcoholic drinks group Diageo reported a 24 per cent rise in half-year earnings today.

Alcoholic drinks group Diageo reported a 24 per cent rise in half-year earnings today.

The group - which makes Guinness, Smirnoff vodka, and Johnnie Walker scotch among other drinks - reiterated its forecast that annual underlying operating profits should rise 7 per cent.

Diageo posted earnings per share before exceptional items for the six months to the end of December of 31.1 pence a share, in line with analyst forecasts of 30.8-31.6p.

The group also reported half-year operating profits rose an underlying 7 per cent to £1.261 billion (€1.844 billion).

READ MORE

"Material changes to these first-half trends are unlikely in in the balance of the year and we are therefore comfortable in reiterating our full year guidance of 7 per cent organic operating profit growth," said Chief Executive Paul Walsh.

Diageo is targeting 4 per cent growth in underlying sales and a 7 per cent underlying operating profits rise for its financial year to end-June 2006.

The group announced a 5 per cent rise in its half-year dividend to 11.95 pence a share.