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Diageo profit inches ahead
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February 24, 2000: 4:57 a.m. ET
First-half earnings up 4.5% as wine, spirits sales grow, beer stays flat
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LONDON, (CNNfn) - Diageo, the U.K. maker of Guinness beer and Häagen-Dazs ice cream, said Thursday its first-half profit rose 4.5 percent as higher revenue from fast-food restaurants and wines and spirits made up for a flat performance in its beer unit.
Half-year profit excluding one-time charges and goodwill amortization climbed to 766 million pounds, or 22.5 pence a share, from 733 million pounds, or 20.4 pence, a year earlier.
Net income fell by one-third to 440 million pound, hit by a charge of 325 million pound before tax related to the divestment of four European drinks brands.
Sales rose to 6.596 billion pounds from 6.267 billion a year earlier.
John McGrath, chief executive, said that a 13 percent increase in marketing expenditure behind Diageo's brands would "further increase their leadership positions and drive shareholder value".
Diageo was formed by the 1997 merger of Guinness, which makes Johnnie Walker whiskey and Smirnoff vodka as well as the famous stout beer, with Grand Metropolitan, owner of Burger King restaurants and U.S. food maker Pillsbury. 
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Diageo
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