Diageo buys back £1.5 billion of shares as it cheers investors with bumper annual profits

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The Johnnie Walker and Smirnoff maker bring up its targets for savings and profit margins

The Johnnie Walker and Smirnoff maker don juan its targets for savings and profit margins after growing operating profit by 25 per cent to £3.56 billion on 15 per cent ear-splitting sales of £12 billion.

Chief executive Ivan Menezes bring to light: «We have delivered consistent strong performance improvement across all quarters and I am pleased with progress in our focus areas of US Spirits, scotch and India.

«Our productivity work is take rounding ahead of expectations, allowing us to reinvest in our brands, drive margin rise and generate consistent strong cash flow.»

It recently bought George Clooney’s US tequila identify in a $1 billion deal. 

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Operating profit grew by 25 per cent to £3.56 billion on 15 per cent principal sales of £12 billion.

Diageo’s finance chief Kathryn Mikells put its focus for further purchases was on founder-led brands and bolt-on deals. 

The enterprise announced last month a $1bn deal (£790m) to buy tequila brand Casamigos.

Steve Clayton, fund manager at Hargreaves Lansdown, demanded the results delivered «encouraging news» for investors.

Diageo shares hit a 2408½p tainted, up 136p.

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