Emerging markets boost Diageo profits
DRINKS group Diageo today posted an eight per cent rise in full-year operating profit and a five per cent rise in sales, due to a strong performance in its US spirits business and emerging markets.
Emerging markets sales rose 11 per cent and operating profits rose 18 per cent, as increased scale led to operating margin expansion. Sales from the region make up 42 per cent of Diageo’s business.
In North America, sales rose five per cent and operating profit was up nine per cent.
“Price increases in each region, positive mix in North America and Latin America and the rigour we have in managing our cost of production and controlling our overheads drove significant expansion in operating margin,” said chief executive Ivan Menezes.
“This year we have again made a strong business stronger and we remain on track to deliver our medium term guidance.”