Drinks giant Diageo today reported a "particularly strong performance" for its Scotch whisky in the second half of 2021.
Its boss also expressed confidence in the group’s ability in 2022 to navigate disruptions such as Covid-19, global supply-chain constraints and rising cost inflation.
Diageo’s interim results for the last half year showed a 23% surge in interim operating profits to £2.743billion, while net sales were ahead 16% to £7.957billion.
The group has more than 200 drinks brands sold in 180-plus countries and a workforce of nearly 28,000.
Scotch whisky is its largest category and the portfolio includes Johnnie Walker, Black & White, Buchanan's, J&B, Grand Old Parr, Lagavulin, The Singleton, Talisker and Windsor.
The group said it had enjoyed broad-based growth across most categories in the second half of last year, with a particularly strong performance from Scotch, tequila and beer.
Chief executive Ivan Menezes said: "I am very pleased with our financial results. We delivered strong organic net sales growth across all regions and operating margin expansion."
FTSE 100
The UK's leading share index got off to a disappointing start this morning when the FTSE 100 dipped by nearly 60 points to 7,411.59. Concerns are continuing about factors including the impact of a possible Russian invasion of Ukraine, as well as soaring inflation and the likelihood of much higher interest rates on both sides of the Atlantic in the months ahead.
Today's opening performance by the FTSE 100 was in stark contrast to Wednesday's close - ahead just under 100 points at 7,469.78. The index benefited yesterday from the continued rise in the oil price which boosted shares in both Shell and BP.
The US Federal Reserve yesterday laid the groundwork for its first interest rate rise since 2018 in March as it promised to take action to tackle America's living-costs crunch.
The Telegraph reports that the central bank's rate-setters signalled rates will be lifted at their next meeting as American households are battered by inflation of 7% - the highest level since 1982.
Fed chair Jerome Powell said the US economy "no longer needs sustained high levels of monetary policy support" as he admitted the price surge has been "larger and longer lasting than anticipated".
The Fed's policymakers said that the jobs market's "remarkable progress" and the inflation rate soaring "well above" 2% will allow them to raise borrowing costs "soon". A US rate rise in March will be the first since 2018, with markets betting that the Fed will lift borrowing costs four times this year.
Companies reporting today
- Finals: Music Magpie, TSB bank
- Interims: Diageo, Rank Group
- Trading updates: 3i Group, Britvic, CVS Group, Dr Martens, easyJet, Fever-Tree, Mitie Group, Saga, St James's Place, YouGov
- Other updates: ONS business insights and impact on the UK economy