TheMarketingblog

City Nuggets : Debenhams, Diageo, SABMiller

Retailers are in the spotlight again today with Debenhams interim results. The high street retailer has said pre-tax profits fell 5.4pc to £120.3m over the six months to March while like-for-like sales rose 3.1pc. Michael Sharp, chief executive, who warned last month that bad weather would impact profits, has blamed snow for a 6.8pc drop in UK operating profits. He said the second half would be better “despite consumer sentiment remaining weak and challenging market conditions.”

Diageo has reported 5pc jump in net sales in a interim management statement for the nine months to March that underscores the drinks company’s shift in focus to emerging markets. Sales of Diageo’s brands, which include Smirnoff, Johnnie Walker and Guinness, in Western Europe dropped 4pc during the period but jumped 14pc in Latin America and 9pc in Africa and Eastern Europe. Paul Walsh, chief executive, has said the performance was “robust.”

SABMiller, which owns Fosters, has reported a 7pc jump in full year group revenues. Lager sales in Europe rose 6pc with 4pc growth in the UK, 8pc in Poland and a 24pc jump in Romania.

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