Diageo sales growth curbed by forex

  • Diageo has reported a 1.7 percent increase in half-year sales.
  • Growth was curbed by foreign exchange rates and issues including a later Chinese New Year.
  • The world's largest drinks spirits company said that operating profit rose 6.1 percent to 2.2 billion pounds ($3.14 billion) on net sales up 1.7 percent.

Diageo, the world's largest spirits company, reported a 1.7 percent increase in half-year sales on Thursday, as growth was curbed by foreign exchange rates and issues including a later Chinese New Year and a ban on selling alcohol near Indian highways and stood by its full-year goals.

Diageo said operating profit rose 6.1 percent to 2.2 billion pounds ($3.14 billion) on net sales up 1.7 percent at 6.5 billion pounds.

Earnings per share before items were 67.8 pence.

The maker of Johnnie Walker whisky and Smirnoff vodka had previously warned that sales and profit growth for the current financial year would be driven by the second half, which will end in June.

Craig Barritt | Getty Images

"Our financial performance expectations for this year remain unchanged," Chief Executive Ivan Menezes said in a statement.

The company has promised "consistent mid-single digit top line growth and 175 basis points of organic operating margin improvement in the three years ending June 2019".