Alexa
  • Directory of Taiwan

Higher taxes drive Diageo's full-year profit down 22 percent

Higher taxes drive Diageo's full-year profit down 22 percent

Diageo PLC, the world's largest producer and distributor of alcoholic drinks, reported Thursday that full-year profits fell 22 percent as taxes more than offset growth in sales and operating profit.
For the year ending June 30, the company reported a net profit of 1.49 billion pounds (euro2.2 billion; US$3.0 billion), compared with 1.9 billion pounds in the previous year.
Sales rose 2.2 percent to 9.7 billion (euro14.6 billion; US$19.9 billion), although the weakness of the U.S. dollar decreased the value of reported sales by 358 million pounds (euro528 million; US$718.5 million), the company said.
Diageo said sales growth was driven by premium brands, with sales of Smirnoff up 25 percent and Johnnie Walker up 19 percent.
The reported effective tax rate for the year was 32.4 percent, compared with 8.4 percent in the previous year. The company said a provision for the settlement of tax liabilities relating to the Guinness/GrandMet merger, lower carrying value of deferred tax assets and the tax impact of an intragroup reorganization of certain brand businesses contributed to the higher rate.
"Whilst we watch for any impact the current volatility in financial markets may have on broader trading conditions, the investments we have made in brands and markets this year have created an even stronger platform for the future," chief executive Paul Walsh said. "Therefore we currently expect increased organic operating profit growth in 2008 of 9 percent."
___
http://www.diageo.com


Updated : 2021-07-30 16:47 GMT+08:00