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Diageo full year net profit up 7 pct

Diageo full year net profit up 7 pct

Diageo PLC, the world's biggest spirits maker, posted a 7 percent rise in full-year profit on Thursday, benefiting largely from positive exchange rate movements amid weaker demand for its key products.
The maker of Johnnie Walker whisky, Smirnoff vodka and Guinness stout said net profit for the 12 months to June 30 was 1.62 billion pounds ($2.62 billion), up from 1.52 billion pounds a year ago.
Organic operating profit growth was 4 percent _ at the lower end of the company's forecast 4 to 6 percent range.
Diageo said that while the global economy appears to be stabilizing, uncertainty remained about the sustainability and pace of any recovery, leading it to forecast low single digit organic operating profit growth in fiscal 2010.
Revenue rose 15 percent to 9.31 billion pounds, but sales were flat excluding the exchange rate gains.
The company has been hit by destocking in the United States and weak markets in Europe. It last month announced that it was cutting 900 jobs as it shutters a 199 year-old distillery and packaging plant as part of a cost-cutting restructure of operations in Scotland.