Diageo, the multi-national beer and spirits company, has reported largely positive half-year figures however it warns that expected exchange rate movements are likely to knock full-year sales.
The company estimates exchange rates will adversely impact net sales by approximately £460m and operating profit by approximately £60m.
The company, whose brands include Johnny Walker and Smirnoff reported net sales (£6.5bn) and operating profit (£2.2bn) up 1.7% and 6.1%, respectively, as organic growth was partially offset by adverse exchange rates.
Whisky and gin
UK sales rose 7%, boosted by higher sales of Tanqueray gin and Guinness. Global sales of Scotch whisky, Diageo’s biggest product, grew 3%, while vodka sales fell 6%. Increased sales of tequila were primarily down to the Don Julio brand, which Diageo acquired in 2015.
Cash flow continued to be strong and in line with last year, with net cash from operating activities at £1.2bn and free cash flow at £1bn