Diageo has reported drinks turnover of £8.9bn for the year ending June, up 1% on 2003 with total turnover down by 4% from £9.3bn after the sale of Burger King last year.
Pre-tax profit was up 32% to £1.97bn, mainly due to a loss of £1.4bn made on the fast food chain sale which affected last year’s profit figures.
Volume increased 4% and Diageo chief executive Paul Walsh attributed this to Diageo’s collection of brands and geographic diversity. “The global brands have been the key driver of the improvement achieved in volume growth, up from 1% last year.”
As announced in its July trading statement, Diageo did not anticipate any major changes in the trading environment during this financial year, Walsh added.
“Europe remains our key business challenge and north America continues to provide our biggest opportunity.”