As the remaining wine businesses are immaterial no organic figures for wine are disclosed in the business and financial review for the six months ended December 31, 2015, says Diageo.
Thomas Buckley of Bloomberg reports: “Diageo Plc reported first-half profit growth that beat analysts’ estimates as the world’s largest distiller posted better-than-expected sales and gained market share in Europe.”
The median estimate of 21 analysts surveyed by Bloomberg was for growth of 1.5%. European sales rose 2%, better than the 1% expected by analysts, boosted by so-called reserve brands like Johnnie Walker and Ciroc vodka.
Buckley comments: “The rebound in Europe, where sales had been sluggish, is welcome as Diageo had been relying on emerging markets such as Africa, which should account for 20% of Diageo’s sales by 2020, Menezes has said. Last year it dissolved an African joint venture with Dutch brewer Heineken NV there so the distiller could have more control over its operations. That comes as slowing demand for its Smirnoff vodka in the US.
"Diageo’s first-half organic sales rose 1.8%, compared with analysts’ estimates for growth of 1.6%. That was an improvement from the first-quarter’s 1.5% decline. Organic measures exclude the effects of acquisitions and currency fluctuations,” concludes Bloomberg’s Buckley.
