Thursday morning business bulletin

Aug 28 2008 By Karen Dent

Diageo today said high-profile advertising helped Guinness outperform the UK market, as the drinks firm delivered underlying profits growth of 9%.

The maker of Johnnie Walker whisky and Smirnoff vodka said sales of Latin American scotch and beer in Africa were the main growth drivers during the year to June 30, compensating for more sluggish performance in the US and Europe.

Chief executive Paul Walsh also warned the economic slowdown could see growth fall to 7% during the current year.

Operating profits for the year to June rose 3% to £2.23bn, but were up 9% on an organic basis as previously indicated by the firm.

The maker of Branston pickle and Hovis bread today said it had achieved the "key" price increases needed to cover surging commodity costs.

Premier Foods, which also makes Mr Kipling cakes, described trading conditions as challenging but said it met its profit target for the half year.

The profits figure fell 29% to £3.6m but Premier said growth was weighted towards the second half as a result of the price rises, a factory closure programme and efforts to rejuvenate its Hovis brand.

Transport group Stagecoach today said profits since May were higher than expected after a sharp rise in revenues at its bus division.

Stagecoach said the trading performance offered further evidence people were opting for bus and train travel in the face of high fuel costs.

The UK bus division achieved a 9.3% improvement in like-for-like revenues in the 16 weeks to August 17, including a 4.9% rise in passenger numbers.

Stagecoach said this more than compensated the company for cost pressures stemming from its higher fuel bill.

Around two million UK passengers travel on Stagecoach buses every day in 100 towns and cities in the UK. The firm has a fleet of around 7,000 buses.

The pound at 9am was US$1.8360 compared to US$1.8306 at the previous close, while the euro at 9am was £0.8043 compared to £0.8018 at the previous close.