Scotland’s largest whisky producer today reported a 9 per cent rise in annual profits, boosted by rising sales across its emerging markets such as Africa, Latin America and Russia.
Diageo, whose stable of brands includes Baileys, Guinness, Johnnie Walker and Smirnoff, said operating profits before one-off items rose to £3.2 billion in the year to 30 June, up from £2.9bn a year earlier and slightly ahead of analysts’ expectations.
The group proposed an 8 per cent increase in its final dividend to 26.9p per share, which it said underscored its confidence in achieving its medium-term targets.
Chief executive Paul Walsh said: “Emerging markets, which amount to almost 40 per cent of Diageo’s business, grew net sales 15 per cent and operating profit 23 per cent.”
The world’s biggest spirits company is believed to be eyeing the acquisition of a minority stake in Mexican tequila maker Jose Cuervo from its owners, the Beckmann family.
“We are continuing discussions with the Beckmann family given the end period for our distribution arrangement,” chief financial officer Deirdre Mahlan said, although she refused to be drawn on the nature of the talks.
Diageo’s long-term distribution deal with Jose Cuervo ends in June 2013. Analysts estimate the world’s best-selling tequila brand could be worth around £1.9bn.
