Drinks firm Diageo reported a 4.8 per cent decline in underlying pretax profit to £1.235 billion sterling for the six months to December 31st.
Volumes grew 5 per cent in North America and 1 per cent in Europe, the London-based group, which owns Johnnie Walker whisky and Guinness, said today.
Last year, the group reported underlying first half pretax profit of £1.297 billion, and analysts had forecast between £1.23 billion and £1.27 billion for this year's first half.
"We have made a good start to the year and we can maintain our full-year guidance of 6 per cent organic operating profit growth despite absorbing an increase in the cost of executing additional productivity initiatives in the second half," chief executive Mr Paul Walsh said.
Shares in Diageo have underperformed the FTSE 100 index by 10 per cent over the last 12 months and arch-rival Allied Domecq by around 13 per cent.
Diageo shares closed at 745 pence yesterday, valuing the group at around £22.7 billion . The interim dividend was 11.35 pence per share and basic earnings per share 29 pence.