Thursday, 23 August 2012

Diageo Results: Boss Urges Osborne Spend More

The chief executive of Diageo has told Sky News the Chancellor should "loosen the purse strings" to stimulate the economy.
Paul Walsh, who heads up the world's largest distiller, said that George Osborne should take into account the change in economic circumstances.
"I personally am in favour of some acceleration in infrastructure investments," he said.
If the Chancellor "loosened the purse strings", it could boost employment and "help the country in the longer term", he added.
It comes as the drinks company, which makes Guinness, Smirnoff and a host of other brands, reported a strong set of full-year results.
Diageo made £3.2bn operating profit last year - up by more than 10% on the year before.
Its global sales boomed by 10% to £14.6bn, led by the emerging markets, which now make up almost 40% of the company’s business.
But sales fell by 1% in Europe as the company deals with its "uneven economy", Diageo said.
Despite this, Mr Walsh was upbeat about doing business in the region.
"There are growth opportunities to be had in Europe. It's not easy, but nor can you write it off," he said.
"It's a big market. It will come back.
"It may take some time but for companies like us, our job is to mine those opportunities and that's what we're doing."

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