Weak dollar sees huge fall-off in Diageo profits

DIAGEO spent close to €75 million closing its Guinness brewery in London and shifting capacity to St James Gate in Dublin, it emerged last night.

The company also said the weak US dollar will shave close to €150m off the profits of the drinks giant which makes Guinness, Baileys and Smirnoff.

Currency impacts in the first six months of the year will wipe out profits from an increase in sales, the company warned yesterday in a trading update which resulted in a near 2% dip in the company's share price.