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THE OWNER of Guinness and the world’s biggest producer of alcoholic drinks, Diageo, has recorded rising third-quarter sales, aided by a strong performance in the United States – but also revealed a sharp slowdown in key emerging markets.
Group sales, excluding acquisitions, disposals and currency effects, grew 4.0 per cent in its third quarter, or the three months to the end of March, Diageo said in a trading update.
That compared with a 6.0 per cent increase in the same part of its previous financial year. Volumes meanwhile slid 1.0 per cent.
Market expectations had been for sales growth of 5.0 per cent, according to Dow Jones Newswires.
Diageo added that sales meanwhile increased by 5.0 per cent in the nine months to the end of March.
Over the same period, North America sales rose 6.0 per cent, up from 5.0 percent a year earlier.
Asia Pacific sales meanwhile gained just 4.0 percent over the nine months. That contrasted with 10-percent growth in the previous fiscal year.
On a nine-month basis, Diageo also posted a combined 9.0 per cent increase for Africa, Eastern Europe and Turkey. Latin America and Caribbean sales soared 14 per cent, despite weakness in Brazil, while Western Europe sales dropped 4.0 per cent.
Diageo added that its Asia Pacific performance was hit by the timing of price increases and the decline of the Scotch whisky market in South Korea.
“Our performance in the quarter was robust and again demonstrates Diageo’s strengths, global reach and category breadth and depth,” added chief executive Paul S Walsh in the statement.
“Therefore 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.
“Given our market positions and geographic diversity we remain confident that Diageo’s performance continues to be in line with our medium term guidance.”
The British brewing giant’s key products include Baileys liqueur, Captain Morgan rum, Johnnie Walker whisky, Smirnoff vodka and Tanqueray gin. Almost 40 per cent of Diageo’s business is in emerging markets.
Longest article ever?
Sure wouldn’t it have been better, if he’d a been killed father (reagan).
They did put the #long read at the end of it
George bush is allowed roam freely why not this guy
Not big fan of regan,but he once told thatcher he was gonna put American soldiers on the border when she said brit soldiers were gonna invade the south of Ireland
@Paul
I’m surprised to learn this. Where did you read or hear it?
Never heard or read of that anywhere…
Paul, that’s nonsense!
OTOH, it’s just been shown that you can get 23 green thumbs for making up complete nonsense as long as it’s anti-Brit.
He did his time
George Bush would of gained the presidency had Reagan died as he was Vice President.
I’m just saying.
He got in anyway in 1984
He wasn’t president till 88
Glen, that’s stating the obvious. Vice-presidents become president if the president dies in office. So what’s your point or do you have a conspiracy that you want to share?
Dublinlad/ Declan Noonan
What I’m saying is ” obvious” to anyone who understands what the Bush family are like.
Do try to keep up Declan if you are going to participate in the discussion.
Glen, what are you insinuating? Do tell us. I’m up for a laugh this morning.
I think He means the younger one..
Good article,but don’t think I’d take the chance of releasing him after reading that.
Poor Jodie foster must have felt like shite!
Bunch of BS cooked up by Bush and served by Hinckley. I’m just wondering if old George still has to make a balloon payment for services rendered.
They wouldn’t consider releasing Hinckley if Sarah Brady had not died a few weeks ago. The timing of this is in poor taste.
He had terrible aim, practically hit everything from 15 feet away except Reagan who I believe got hit by a ricochet. Pity.
John Hinckley or Mark David Chapman, who would you release?
have your say