Diageo misses forecasts but is saved by emerging markets

Diageo, the world's biggest spirits group, today missed City profit forecasts for the first half of its financial year and only avoided having to lower its full-year targets because of a strong recovery in its emerging markets divisions.

The maker of Smirnoff, Johnnie Walker and Guinness said Europe was weaker due to the challenging economic conditions, although that was offset by better trading in Latin America, Africa and Asia.