|
Allied Domecq profit up
|
 |
May 1, 2001: 3:51 a.m. ET
World's No. 2 liquor company posts 16% earnings rise, driven by core brands
|
LONDON (CNN) - Allied Domecq, the world's No. 2 liquor company, posted a profit rise driven by sales of brands like Ballantine's whisky and Beefeater gin.
The UK-based company said on Tuesday first-half pretax profit increased 16 percent to £236 million ($338 million) from £204 million a year ago, before costs related to acquisitions and one-time items.
Allied Domecq said sales grew 12 percent to £1.45 billion in the six months, as the company also strengthened its brand portfolio with the acquisition of Mumm and Perrier-Jouet champagnes and the U.S. distribution rights for Stolichnaya vodka.
The company, which last year pulled out of the bidding for the drinks business of Seagram in the face of competition from rivals Diageo (DEO) of the UK and France's Pernod Ricard, is continuing to boost earnings by cherrypicking world-class labels to add to 25 frontline brands.
"Our focus remains on generating profitable value from our existing portfolio of powerful brands and on strengthening the portfolio and our distribution capabilities through acquisition and joint venture," said Philip Bowman, chief executive.
Allied's net income for the first half fell 3.5 percent to £167 million from £173 million a year ago as it continued to "revitalize" its U.S. Baskin-Robbins fast-food business, which just maintained a trading profit.
The Dunkin' Donuts franchise in the U.S. performed strongly, however, with sales in stores open more than a year rising 8 percent, Allied said.
Shares in Allied (ALLD), which forecast sustained earnings growth for the full year, fell 1.9 percent to 419.5 pence in London trading. 
|
|
|
|
|
 |
|
