Drinks company Diageo’s profits has plunged 47% year on year as the closure of restaurants and bars around the world due to Covid-19 hit sales.

The company, which owns brands including Guinness, Johnnie Walker and Smirnoff, had to take a one-off hit of £1.3bn to reflect the lower valuation of its business in India, Nigeria, Ethiopia and Korea.

That meant operating profits for the year ended 30 June were down 47% to £2.1bn, while net sales fell 8.7% to £11.8b due to the virus impacting these markets.

Sales in North America were up, but this was offset by declines in all other regions.

CEO Ivan Menezes describes 2020 as a “year of two halves” with consistent performance in the first half, before the outbreak of Covid-19 led to “significant challenges”.

“Through these challenging times we have acted quickly to protect our people and our business, and to support our customers, partners and communities,” he says.

“While the trajectory of the recovery is uncertain, with volatility expected to continue into fiscal 2021, I am confident in our strategy, the resilience of our business and am very proud of the way our people have responded.

“We are well-positioned to emerge stronger.”