Diageo’s CFO feeling positive after profit rise
Expansion in emerging markets helps beverage giant earn £2.36bn in the year to 30 June
By CFOWorld.co.uk | CFO UK | Published 12:23, 25 August 11
Diageo’s CFO Deirdre Mahlan spoke positively of her company’s prospects after posting a 5 percent organic profit rise for the year to 30 June.
Expansion in emerging markets helped the beverage giant deliver £2.36 billion worth of earnings in the year and its bosses are targeting 6 percent sales growth over the coming 12 months.
Mahlan (pictured) told reporters on Thursday that the business, which owns brands like Smirnoff, Guinness and Johnnie Walker, is in a stronger position than its beer-making rival Heineken which reported its financial results on Wednesday.
She said Diageo has established a broader customer base and saw strong growth in its Latin American, African and Asian markets.
CEO Paul Walsh said the company would not be immune from the effects of a “fragile global economy” but insisted that it has a strong platform for growth in the coming year.
“We have finished the year strongly, the last couple of months of July and August have continued along the same trajectory,” said Mahlan, who was named CFO in October 2010, having previously worked as Diageo’s head of tax and treasury.
Diageo said it would cut costs by £80 million by June 2013 after it announced a review back in May aimed at reducing the cost of inputs and operating costs.
The group said underlying annual sales and operating profit both rose 5 percent in the year to end-June, while overall group sales grew 2 percent to £9.9 billion.
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