Shares in drinks maker Diageo ticked up on Thursday morning, after the group posted a rise in both sales and operating profit for the six months to December 31st.
Net sales at the firm, who own brands including Gordon’s, Smirnoff and Ketel One, rose 1.7 percent to £6.5 billion over the period, with operating profit up 6.1 percent to £2.2 billion.
Organic growth pushed up both net sales and operating profit but the figures were negatively affected by the adverse exchange rate. The company said there was growth in all regions, with organic operating profit growing by 6.7 percent as increased investment in marketing investment was more than offset by efficiencies from Diageo’s productivity programme.
Diageo said cash flow continued to be strong and in line with last year, with net cash from operating activities at £1.2 billion and free cash flow at £1 billion. The group reported a basic eps of 82.2 pence, up by 36.3 percent.
Ivan Menezes, Diageo’s chief executive commented, “Our financial performance expectations for this year remain unchanged. We are confident in our ability to deliver consistent mid-single digit top line growth and 175bps of organic operating margin improvement in the three years ending 30 June 2019.”
Shares in Diageo (LON:DGE) are currently trading up 1.18 percent at 2,572.50 (0942GMT).