LONDON (ShareCast) - Diageo’s chief executive Paul Walsh sold nearly £400,000 worth of shares after the drinks giant reported a 9% hike in full year operating profit but lowered forecasts for 2009.

He offloaded 39,148 shares in the Guinness brewer at 1,001p each, but still has more than 644,000 left.

An operating profit of £2.2bn was in line with the firm’s own expectations, although organic operating profit growth for the coming year is expected to be between 7% and 9% due to rising costs and lower consumer spending.

Net sales were up 7% at £8.09bn, but pre-tax profit was little changed from last year’s £2.095bn, down a touch to £2.093bn.

The market cheered strong sales of Guinness, which saw double-digit revenue growth in Africa and outperformed other beers in the UK and Ireland thanks to a popular advertising campaign.

Shares in Diageo, whose other brands include Johnnie Walker whisky and Smirnoff vodka, have held up well over the past year despite turmoil in the markets.

In May, Walsh pocketed almost £450,000 from the sale of 125,487 shares at 1,040p each after exercising options over 130,487 shares at 687p.

Walsh became chief executive of Diageo in 2000, having joined the board in 1997. He is also the chairman of the Scotch Whisky Association.


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