Diageo 1st Half 2018 Profit Increases; Expects Slightly Lower Tax Rate
January 25 2018 - 2:01AM
Dow Jones News
By Maryam Cockar
Johnnie Walker whisky maker Diageo PLC (DGE.LN) said Thursday
that pretax profit for the first half of fiscal 2018 rose 6.2% and
that it expects a slightly lower tax rate due to U.S. tax
reforms.
For the six months ended Dec. 31, the spirits group posted a
profit of 2.20 billion pounds ($3.15 billion) compared with GBP2.07
billion in the same period a year earlier.
Net sales increased 1.7% to GBP6.53 billion from GBP6.42
billion. Scotch sales, which represents 27% of Diageo's net sales,
grew 3% in the period.
The FTSE 100-listed company raised the interim dividend 5% to
24.90 pence from 23.70 pence last year.
Diageo said its tax rate for the first half of fiscal 2018 was
19.8% compared with 20.9% in the same period a year earlier. The
company expects its tax rate for the year ending June. 30 to be
about 20% lower than its previous guidance of 21%.
Chief Executive Ivan Menezes said Diageo's expectations for the
full-year are unchanged, and the company expects to deliver
mid-single digit top-line growth and 175 basis points of organic
operating margin improvement in the three years ending June 30,
2019.
Write to Maryam Cockar at maryam.cockar@dowjones.com
(END) Dow Jones Newswires
January 25, 2018 02:46 ET (07:46 GMT)
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