UK. Diageo’s global duty free volumes were flat for the full year ended 30 June 2003, an impressive performance given the devastating effects of SARS and the Iraq war on Asian and other travel markets.
The company said: “This reflects extremely strong customer and consumer activities and continued investment in priority brands in this high profile market.”
Diageo highlighted the performance of ready-to-drink line Smirnoff Ice, which was launched in the year in a number of duty free markets. Another standout performance came from premium gin, Tanqueray No. TEN, which it said was launched with “very strong impact”.
But duty free sales were hit in the Philippines due to the SARS-related decline in travel there.
Diageo, the world’s leading wines and spirits company, posted overall pre-tax profits for the year of £2.2 billion (US$3.4 billion) before exceptional items. This was a +6% increase on last year and was broadly in line with analysts’ expectations.
For continuing operations, which now represent Diageo’s premium drinks business, turnover increased by +3% to £8,961million.
