Diageo Buoyed By US Spirits As Europe Continues To Decline
Published on Apr 18 2013 4:12 PM in General Industry
A strong performance in North America and Latin America & the Caribbean underpinned Diageo's 5 per cent organic sales growth for the nine month period which ended 31 March, as western Europe sales slipped. The drinks giant announced a 4 per cent decline in western Europe sales, compared to a 1 per cent fall for the same period last year. Diageo said underlying trends in the region 'remain unchanged'. Spirits underpinned the group's 6 per cent sales increase in North America, supported by price increases introduced in May 2012.
Sales in Africa, Eastern Europe & Turkey were up 9 per cent and Asia Pacific delivered 9 per cent growth. Latin America & the Carribean provided growth of 14 per cent, despite consumer weakness in Brazil affecting performance.
The first quarter of 2013 saw volumes fall 1 per cent, but organic net sales grew 4 per cent.
Paul Walsh, CEO said,"Despite consumer weakness in three markets, Korea, Nigeria and Brazil, Diageo’s performance for the nine months is in line with the first half and our expectations. Strong performance from our biggest business, US spirits; the continued growth of spirits in Africa; share gains across our markets in Asia Pacific and double digit growth of Johnnie Walker, Crown Royal, Buchanan’s, and Tanqueray are the highlights of the quarter." (19 April)