Diageo PLC, the world's biggest spirits maker has posted a challenging six months as the consumer environment remained weak for the period. Diageo reported a 10% downfall in profit of first half of the year.

The decreased profits are reportedly because of the global recession and the increased competition for some brands that resulted into lesser sales.

For the first half ending December 2009, the company reported a net profit of 1.02 billion ($1.6 billion), decreased by 9.73% as for the same period last year the company posted a net profit of 1.13 billion. The net Sales also fell 2% and were posted 5.2 billion pounds for the first six months of the fiscal. In the first half, Diageo posted operating profit before exceptional items 1.63 billion pounds decreased by 1%.

"The economic and consumer environment remained weak in many markets and we faced a difficult comparison against Q1 last year yet the second quarter did show a return to growth. In addition we reduced stock levels in all regions," said Paul Walsh, Chief Executive of Diageo.

Diageo PLC, the maker of Johnnie Walker whisky, Smirnoff vodka and Guinness stout, also said that the company was in the early stages of recovery in the first half and would grow both sales and profit in the second half of the year.