Diageo reports €2.3bn profit

Guinness-to-Smirnoff firm Diageo today reported a £2.02bn (€2.3bn) profit despite a “challenging” year in which it shed jobs to cope with the economic downturn.

Diageo, which is the world’s biggest drinks firm, saw its pre-tax profits fall slightly in the full year to June 30, down from £2.09bn (€2.375bn) in 2008.

It said the global downturn had affected all its markets, although Europe was hit harder than Asia and North America.

The firm has launched a restructuring programme to cut costs.

Diageo chief executive Paul Walsh said: “We took action quickly to manage these difficult times, reducing our cost base and refocusing marketing spend as consumer trends changed.”

Mr Walsh said the firm had seen growth in vodka, rum, tequila and beer sales, but gin and wine had been weaker in the period and scotch and liqueurs had been the biggest target for de-stocking among its customers.