Sector movers: Beverages gain as Diageo's results impress

31st Jul 2013 15:34

Strong gains for Diageo helped push the beverages sector higher on Wednesday as investors toasted a solid set of results from the maker of Guinness, Baileys and Smirnoff .The company delivered a 5.0% increase in net sales in the year to June 30th from £10.76bn to £11.43bn, in line with expectations, driven by strength in the North American market as well as continued double-digit growth in emerging markets. The Western European market however remained "challenging", the company said.Volumes were up 5.0% at 165m equivalent units, up 1.0% organically as growth in the spirits category offset weakness in beer, wine and ready to drink."This year we have again made a strong business stronger and we remain on track to deliver our medium-term guidance," new Chief Executive Ivan Menezes who joined the board at the start of July.The stock was up 3.34% at 2,056p by 15:59 on Wednesday on the FTSE 100, followed closely behind by sector peer SABMiller, which was up 2.63% at 3,222p. The latter, which owns the Peroni, Miller and Grolsch beers, was rebounding after a disappointing first-quarter statement last week in which it said that revenue growth was held back by "unseasonably cold and wet conditions in many of our northern hemisphere markets, which negatively impacted beer consumption".Soft drinks group Britvic meanwhile was up 1.21% at 543.5p as it continued to extend gains after its third-quarter update last week in which it said that it was on track to deliver full-year underlying earnings at the top end of guidance.Top performing sectors so far todayBeverages 14,973.98 +2.81%Gas, Water & Multiutilities 5,968.58 +2.02%Tobacco 38,272.90 +1.98%General Industrials 4,058.48 +1.62%Banks 5,129.35 +1.48%Bottom performing sectors so far todayIndustrial Metals & Mining 1,209.13 -3.58%Electricity 10,041.15 -2.45%Forestry & Paper 10,480.53 -0.46%BC