The Wall Street Journal-20080215-Diageo PLC- First-Half Earnings Rose 9- On Sales of Premium Brands

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Diageo PLC: First-Half Earnings Rose 9% On Sales of Premium Brands

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Diageo PLC, which makes Guinness stout, Smirnoff vodka, Captain Morgan rum and Johnnie Walker Scotch whisky, said fiscal first-half net income rose 9% on robust sales of its premium brands, and the company reiterated its full-year profit forecast. Net income in the six months ended Dec. 31 rose to GBP 975 million ($1.91 billion) from GBP 895 million a year earlier. Sales rose 5.8% to GBP 5.67 billion from GBP 5.36 billion. In the United Kingdom and Ireland, Guinness returned to growth after the company spent more on marketing. Diageo maintained its forecast for organic growth in operating profit at 9% for the fiscal year, steady with the first half. One area of concern is the Asian-Pacific region, where sales rose just 1% and operating profit fell 12%.

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