Diageo sales up 9% over three months

SALES AT drinks group Diageo increased by 9 per cent in the three months to September 30th, driven by strong growth in the Latin American and Caribbean regions.

Diageo no longer gives a break-down on the Irish market but it is understood that sales in Ireland remained weak during this period.

“Net sales growth was marginally ahead of expectations and the quarter did benefit from some one-off factors which are not expected to reoccur in the second quarter. Consumer trends are broadly unchanged,” said Paul Walsh, chief executive of Diageo, adding that he expects sales growth for the first half of the year to improve on last year.

The producer of Guinness and Johnnie Walker whiskey saw sales in the Latin American and Caribbean regions increase by 30 per cent, while, in Europe, sales were up 6 per cent. The group reported double digit growth in Russia, Germany, eastern Europe and Spain.

In North America, sales advanced 5 per cent, driven by a positive price/mix across all categories, and the introduction of the lower priced ROKK. Wine sales remained weak, and beer was broadly flat. In Africa, sales were up 9 per cent, although sales declined in South Africa due to the growth of lower priced, locally produced spirits. In Asia Pacific, sales increased by 14 per cent, while the developing markets grew led by the performance of Johnnie Walker.