The contrasting impact of Britain’s vote to leave the European Union on business was underlined when some of the world’s largest companies warned it had hiked food prices and lowered demand for household appliances on one hand but raised overseas profits for British companies on the other.
Unilever, the consumer goods group; Diageo, the owner of Guinness and Johnnie Walker; and Whirlpool, the world’s largest maker of home appliances, all flagged up the impact of Brexit in their financial results on Thursday.
Drinks group Diageo said the fall in sterling will flatter its full-year sales by about £1.4bn and boost operating profit by about £460m. The company has benefited from the weak pound because a high proportion of its earnings are from overseas sales registered in dollars. In the first half of Diageo’s financial year to the end of December, sales rose 15% to £6.4bn with pre-tax profits up 16% to £2.1bn. Diageo shares climbed 77p to 2218p, the biggest riser in the FTSE 100.
However, US-based Whirlpool warned it has taken a $40m (£32m) hit in the UK due to the weaker pound and falling demand for its products, which include washing machines and dishwashers, due to uncertainty following the referendum.