Diageo maintains guidance after profit jump

6th May 2010 07:31

Drinks brands giant Diageo reported a 12% rise in organic sales in the third quarter and maintained its full year guidance.In the quarter ended 31 March 2010 organic net sales growth was 12%, while net sales on a reported basis grew by 9%. The group said growth for the year to date was driven by organic growth and the impact of exchange rates movements.Diageo also maintained its guidance for low single digit organic operating profit growth for the year ending 30 June 2010 Chief executive Paul Walsh said: "While we have seen some signs of recovery, albeit fragile in the mature markets and stronger in the emerging markets, our performance in the quarter benefited from comparison against a weak third quarter last year, from the earlier Easter this year and in some markets sales were brought forward in advance of excise duty increases." "Consumer trends remain difficult to predict, especially in the mature markets. Our guidance for low single digit organic operating profit growth for the full year is unchanged and reflects our successful management of a tough environment in the first half and our continued ability to build on our strengths and increase marketing investment behind our brands."