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Smirnoff, Baileys lift Diageo
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February 21, 2002: 6:08 a.m. ET
World's biggest drinks company profit rose slightly, Burger King takes a bite
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LONDON (CNN) - Diageo, the world's biggest drinks company, said on Thursday profit rose slightly as sales of Smirnoff vodka and Baileys creamy liqueur.
The maker of Johnnie Walker whisky and Guinness beer, which has been busy selling its food businesses, said first-half net income rose 2.4 percent to £810 million ($1.1 billion) from £791 million.
Diageo said it was still committed to selling its Burger King fast food chain, which made an operating profit of £79 million, down 29 percent, in the first six months of its financial year to December 31.
"We have a number of options as to how separation can be achieved and we will explore all of them," Diageo said, adding returning cash to shareholders was "high on its agenda" in the second half of its financial year.
The London-based company, which bought part of Seagram Co.'s drinks unit for $8 billion in a joint bid last year, hopes an improvement in Burger King's second- half performance would enable it to achieve that goal.
The sharp decline in earnings at Burger King, the world's second-largest fast food chain, was caused by increased investment at some restaurants and the closure of others in preparation for a possible sale or stock market listing.
After Burger King and Malibu coconut rum are sold, Diageo will have almost no debt, Reuters said. Diageo is selling Malibu to meet regulators demands after its acquisition of the Seagram drinks empire.
Diageo's stock, which has risen about 20 percent in the past 12 months, was little changed at 810 pence in midmorning trading on Thursday. 
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