Diageo’s profits boosted by Brexit and Scotch sales

Isn’t it ironic that one of the most vocal “Remainers” in the Brexit debate, Diageo’s CEO Ivan Menezes, had to disclose to media that the drinks company has actually profited from the Brexit vote. Diageo has seen rising profits thanks to a triple tonic from a weakened sterling, robust Scotch sales and a strong US performance.

The maker of Johnnie Walker Scotch and Guinness beer saw operating profits jump 28 percent to GBP 2.1 billion (USD 2.6 billion) in the six months to the end of December 2016. Net sales beat expectations, rising 4.4 percent, it was reported on 27 January 2017.

The company said sterling’s Brexit-induced slump against the US dollar and the euro helped push net sales higher, with the pound’s weakness set to bolster full-year sales and profits by GBP 1.4 billion and GBP 460 million respectively.

Let’s hope for Diageo that the good times will last.