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Guinness is now the top beer at U.K. pubs and restaurants, Diageo says

By Steve Goldstein

The number-one beer at British pubs, restaurants and nightclubs is the stout most closely associated with Ireland: Guinness.

That's according to Guinness maker Diageo (DGE.LN), which reported fiscal first-half results on Thursday.

"I never believed I'd see this day. It's fantastic," CEO Ivan Menezes told analysts on a conference call. "The brand is really healthy."

The company more broadly reported a 15% rise in adjusted earnings per share to 98.6 pence, as revenue rose 18% to GBP9.42 billion ($1.7 billion). It reported a 1.8% rise in volume but a 9.4% rise in comparable sales.

Bank of America said both organic sales and earnings before interest and tax came in ahead of estimates. Growth was driven by Europe and emerging markets, but North America slowed more than anticipated, with organic sales of 3%.

Diageo shares skidded 6% in London trade. Simon Hales, a Citigroup analyst, said it's tough to see a silver lining as shipment patterns normalize, marketing spend rises and questions around the health of the U.S. consumer continue.

-Steve Goldstein


(END) Dow Jones Newswires

01-26-23 0826ET

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