Allied Domecq profits climb 6%
Wine and spirits group Allied Domecq said today a strong performance by its core brands was behind a 6% rise in profits.
Growth of favourites such as Ballantine’s whisky, Beefeater gin and Malibu rum helped Allied drum up pre-tax profits of £521m (€753m) in the year to August 31 - slightly above analysts’ expectations.
The group said volumes of core spirits were up 8%, while profits from its premium wines rose 13% and trading profits from its quick service restaurants increased by 21%.
The good performances more than offset difficult trading in markets such as South Korea, France and Germany, it said.
Chief executive Philip Bowman said Allied’s core brands performed particularly well in the United States.
He said the group believed the continued momentum of its core brands, supported by marketing investment, would drive volume and turnover growth and higher gross margins, although certain markets remained challenging.
“This momentum will provide us with the platform to deliver continued earnings growth in 2005,” Mr Bowman said.
