GRAND Metropolitan, the international food and drinks group, gave itself a clean bill of health yesterday, saying trading conditions bad been "broadly unchanged" in the second half of its financial year.

The group said it would continue to sell off under performing businesses.

GrandMet, which has an annual turnover of £8 billion, includes well known brand names such as Smirnoff and Baileys in its drinks businesses, Burger King and Haagen Dazs ice cream.

In its autumn trading statement, it said its Pillsbury food division in the US had continued to trade well, achieving gains in sales volumes, market share and operating profit.

GrandMet's year ends on Monday and the financial results are expected to be published on December 5th.

It said Burger King, the fast food chain, had achieved 2.5 per cent sales growth, higher than the US industry average.

But, it added: "In Europe, Burger King's performance has been disappointing with BSE affecting, in particular, the UK performance.

Earlier this week, GrandMet announced it was selling Pearle, its US opticians chain, for £140 million, on the back of plans to dispose of two thirds of its European food businesses.

"These disposals reflect the group's strategy of focusing on improving the return on total invested capital and releasing cash from areas of low return and limited growth potential," it said.

"GrandMet remains committed to the achievement of solid, organic profit through its strategy of concentrating effort and investment in its core branded food and drinks businesses."

The review, which it said had been produced to keep the markets up to date with its trading, said the integration of Old El Paso into Pillsbury would produce savings greater than the £50 million anticipated at the time of the acquisition.