DGE Diageo Plc

By Ian Walker

Diageo PLC (DGE.LN) said Thursday that it has approved a further 660 million pounds ($866.9 million) of share buybacks as it reported a 5% fall in net profit for the first half of fiscal 2019 due to higher taxes.

Still, the world's largest liquor maker, which owns Johnnie Walker whisky and Tanqueray gin, said operating profit--its preferred metric--rose in the period, driven by organic growth.

Operating profit was GBP2.43 billion for the half year ended Dec. 31 compared with GBP2.19 billion a year earlier and analysts' forecasts of GBP2.31 billion.

Diageo made a net profit for the half year of GBP1.98 billion compared with GBP2.06 billion a year earlier, on net sales that rose to GBP6.91 billion from GBP6.53 billion and compared with analysts' expectations of GBP6.78 billion. Net sales exclude excise duties.

Forecasts are taken from FactSet with revenue based on three analysts' projections and operating profit based on two.

It said the board has approved an increase in its share buyback program, taking the total for the year ending June 30 to GBP3 billion.

Diageo said the board continues to expect a mid-single-digit rise in organic net sales growth this year and to expand margins in line with previous guidance of 175 basis points.

The board has declared an interim dividend of 26.10 pence, up from 24.90 pence for the first half of fiscal 2018.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

January 31, 2019 02:43 ET (07:43 GMT)

Diageo (LSE:DGE)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Diageo (LSE:DGE)
Historical Stock Chart
Von Jul 2023 bis Jul 2024