Diageo H1 profit grows more slowly than forecast

|About: Diageo plc (DEO)|By:, SA News Editor

Diageo (DEO) H1 adjusted EBIT +2.9% to £2.06B vs consensus for growth of 4.9%.

Net profit £1.6B vs £1.52B a year earlier.

EPS 63.5 pence vs 60.4 pence.

Sales £8.01B vs restated £8.13B; net sales +1.8% to £5.93B.

Pretax profit £2.13B vs £1.93B.

Plans cost-cutting program that will lower expenditure by £200M a year by 2017. Restructuring costs £200-250M.

North America net sales +4.6%, Western Europe -1%, Emerging markets +1.3%.

Super and ultra premium brands enjoyed good growth, with reserve brands +18.5%, although beer fell 2.6%.

Interim dividend +9%.

Diageo expects "top line improvement" in H2, and while "some markets may remain challenging," the company "is in good shape for the medium and long term." (PR)