Diageo, the world's largest drinks group which owns Guinness, has reported a 9.4% rise in half-year profits and said current trading was in line with its expectation except for the Burger King unit, which remained 'challenging'.
The London-based group, which also owns Smirnoff vodka and Johnnie Walker scotch, said its pre-tax profits to December 31 rose to £1.189 billion on sales up 4% to £6.84 billion. The profit figure was at the higher end of market expectations of between £1.16 billion and £1.20 billion.
Diageo said its strong performance was led by robust sales growth of its top spirits but trading at the world's second-largest burger chain, Burger King, faced a more difficult environment, particularly in the US.
The group's UDV spirits unit saw operating profit up by 14%, Guinness 13%, Pillsbury food unit 11% higher but Burger King fell by 7%.
'We are determined to improve the operating performance of Burger King to ensure that the proposed full separation of Burger King fom Diageo realises value for shareholders,' Chief Executive Paul Walsh said in a statement. 'The recent appointment of John Dasburg to the role of Burger King's Chief Executive Officer is an important step in this process,' he added.
Earlier this week Burger King hired Dasburg, chief executive of Northwest Airlines Corp., to head the fast-food chain and oversee its planned initial public offering. Any float, of the first 20% of Burger King, is now more likely take place next year.
Walsh said all units were currently trading well in line with its own expectations except for Burger King.
