Diageo has shrugged off a £1.4bn loss from the sale of Burger King with a strong set of first-half results.

The £937 sale of Burger King in December, as well as re-structuring costs of more than £100m, culminated in Diageo's pre-tax loss of £208m in the half year to 31 December, against a £1.275bn profit the previous year.

Paul Walsh, chief executive, said the loss was disappointing but believed the sale had been the right thing to do to allow Diageo to concentrate on drinks: 'It was a milestone in our evolution.'

Excluding exceptionals and goodwill, pre-tax profits rose by 5.5 per cent to £1.295bn from turnover down from £6.48bn to £5.43bn, reflecting the sale of Pillsbury, its food arm.

'Our scale, our diverse geographic reach and our unrivalled range of brands has enabled us to increase market share and deliver organic operating profit growth even in difficult times,' said Walsh.