Liquor maker, Diageo, on Thursday reported a decline in its profit by 10 per cent. The results are for the first half of the fiscal. The reason for the same as sited by the company is weaker sales in US market.
The net profit declined to $1.59 billion or 1.02 billion pounds in the H1 which is lesser than the 1.13 billion pound profits during the same period last year. While the sales, excluding excise duties, rose by 3 per cent, the organic sales were down by 2 per cent.
While the company is looking for growth in the emerging market, the results have been down against the market expectations.
However, the company has kept up its annual targets which the experts believe would be difficult to achieve. It is also going ahead with its plans to have low-single-digit growth for the fiscal.
Weak economic environment and low consumer confidence in US has forced its sales to drop by 6 per cent. The performance in the European market was mixed. While, Diageo reported growth in UK, Southern Europe, it fell in other parts.
Its international sales have risen by 8 per cent.