Diageo, the owner of Guinness, Johnnie Walker whisky and Smirnoff vodka, yesterday said its US business had been affected by the hurricanes that swept the country's southern states this year and warned of a possible impact on its 2006 results.
In a trading statement ahead of an investor conference in London, Diageo added that its European business continued to see weakness in the ready-to-drink segment and in Guinness stout.
The group re-affirmed its guidance for 7 per cent profits growth in 2006. But it said that hurricanes Katrina and Rita had affected its performance in south-eastern US states.
Nick Rose, chief financial officer, said: "It is too early to tell whether this will impact full-year performance or whether the impact will be limited to the first half."
The North American market provides the largest chunk of Diageo's profits, accounting for 37 per cent in the 2005 financial year. The company dominates the spirits market, holding four of the world's top 10 brands.
Diageo also warned that higher oil prices would increase itscosts by £20 million (€ million) this year.
Sales of "ready to drink" beverages were popular in the late 1990s but have fallen out of favour in recent years, losing market share to white spirits.
