Diageo was among the biggest risers this morning after the drinks giant cheered investors with a 17% jump in full-year profits.
Shares in the maker of Guinness stout rose 5% to 1,173p as the group reported a boost to its bottom line from increased sales of higher-priced brands such as Johnnie Walker whisky, Kenel One vodka and Tanqueray No. 10 gin. It also set an ambitious double-digit profits growth target for the medium term. Strong sales growth in Asia and other emerging markets outweighed smaller increases in the US and a decline in Europe, on reduced demand from Portugal, Greece and Spain.
Diageo's share price rise contributed to a modest increase in the FTSE 100, which rose by 22 points, or 0.4%, to 5,228 points in morning trading.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: "Investors are raising their glasses after another robust set of numbers from the drinks giant. The metrics continue to perform as they should – increased profits resulting from margin improvements, reduced costs, additional free cash flow and, as a sign of confidence further out, a hike in the dividend."
"Diageo's global presence is reaping dividends, allowing the company to ride a wave of growth in emerging markets, such as the growing popularity of Scotch in the Asian region. The group is also well placed to purchase further brands as and when the opportunities arise, and the stated performance is in stark contrast to the difficulties which have beset some of its peers," Hunter continued.