International drinks company Diageo has revealed that it spent eight percent more on marketing during the last financial year, reaching £1,691m.
In reporting an overall operating profit of £3,158m for 2012, a growth of 22 percent on the previous year, the company has revealed its increase in marketing spend,
In 2012, the company spent £548m (+ eight percent) on marketing in the US, while in Europe it spent £439m (+ nine percent), the figures also reveal. In Africa marketing spend was £150m (+ seven percent), while Latin America and the Caribbean reported an increase of 14 percent in marketing to £210m. Asia Pacific saw an increase in spend to £344m (+ 14 percent).
Paul S Walsh, chief executive of Diageo commented on the figures for the year ended 30 June 2012, saying; “Diageo is a strong business, getting stronger and the results we released this morning show that very clearly. We have increased our presence in the faster growing marketing of the world through both acquisitions and strong organic growth. We have enhanced our leading brand positions globally, through effective marketing and industry leading innovation and we have strengthened our routes to market. Six percent organic top line growth, nine percent operating profit growth and 60 basis points of margin expansion is a strong performance and demonstrates our commitment to delivering efficient growth.”