Steady performance lifts Diageo shares

Guinness-to-Smirnoff drinks giant Diageo cheered markets today after holding firm on profit guidance despite weakening global markets.

Although underlying sales fell 7% in the three months to March 31 – mainly due to de-stocking by its US wine and spirits distributors – Diageo continues to expect organic profit growth of between 4% and 6%.

The firm behind Johnnie Walker whisky, Captain Morgan rum and Baileys liqueur said it would benefit from a restructuring programme, which is set to deliver £100m (€114m) in cost-savings by next year.

Shares rose more than 2% today as chief executive Paul Walsh stuck to the previous forecasts despite a “more challenging trading environment”.