Allied Domecq posted a 3 per cent rise in annual profit this morning, saying its results had been buffeted by currency fluctuations and pensions costs.
The firm - which sells Malibu coconut rum, Beefeater gin and Stolichnaya vodka - said profit before tax, goodwill and exceptional items was £495 million sterling ($830 million) in the year to August 31st as strong growth in the US offset higher pension costs, a weak dollar and destocking in Spain.
Excluding currency movements, turnover rose 6 per cent, the company said, adding it had to increase the amount it put into the retirement fund by £48 million.
"Early indications are that the 2004 financial year has started well and we are on track to meet current expectations," Allied said in a statement.
Consumer goods firms are battling sluggish economies and a drop in spending by shoppers, particularly in continental Europe. Yesterday, food giant Unilever cut its annual sales target for the second time in four months.
Shares in Allied, which warned in February that profits would be flat in the year to August 31st, closed at 401-1/4 pence yesterday, valuing the business at about £4.4 billion sterling.