FX.co ★ Diageo's sales rise unexpectedly on US demand

Whiskey maker Johnnie Walker and Rum Captain Morgan grew organically by 1% last half. Analysts, in turn, expected the indicator to decline by 4.6%.

In North America, sales jumped 12% in the six months ended December 31. The US accounts for roughly 80% of Diageo's retail sales and nearly 45% of the company's total profit, while in Europe, bars and restaurants account for the bulk of Diageo's revenues and profits.

Diageo's net sales in Europe and Turkey fell 10%, Latin America and the Caribbean fell 1%, and Asia Pacific declined 3%. Africa recorded growth thanks to strong performance in Nigeria, the continent's most populous country.

Adjusted earnings for the last half were down 13% to 69.9p a share, but better than the average forecast of 67.8p.

The company raised its interim dividend by 2% to 27.96 pence per share.

Diageo shares gained 3% by 12:45 GMT + 2.