United Kingdom: Diageo set to post higher half-year earnings this week

Diageo Plc, the world’s biggest alcoholic drinks group, is expected to post higher half-year earnings this week as cost cutting helps offset a fall in sales, while it hopes for signs of a pickup in the first months of 2010, Reuters communicated on February, 8.

The maker of Guinness beer is likely to see signs of improvements in some markets, but analysts warn any upturn will be slow with consumer spending still muted, especially in the key U.S. market.

Analysts expect Diageo will reiterate its target for a low single digit percentage rise in operating profit for the year to June 2010.

In its previous financial year to June 2009, Diageo produced flat underlying sales, volumes down 4 percent and operating profits up just 4 percent.

10 February, 2010