Weak Euro economies dampen Diageo results

on 10/02/11 at 8:12 am

Industry

Diageo has taken a hit in the last 6 months of 2010 from weak performance in the struggling economies of Iberia, Greece and Ireland.

Publishing its results for the first half of financial year 2011, the UK-based spirits maker said overall reported sales rose 2 per cent to £5,320m. But growth was dampened by a 13 per cent drop in sales from Greece, the Iberian countries and Ireland.

Missed expectations

The weakness in Europe meant that Diageo missed market expectations. On the back of the news, shares in the company dropped almost 5 per cent in trading this morning.

Giving his reaction to the H1 results, James Edwardes-Jones, an analyst at Espirito Santo said: “A small miss; no substantive mention of cost saving or restructuring, unchanged and uninspiring guidance … we regard this as a missed opportunity by Diageo.”

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