Diageo suffered a 1.7 per cent fall in first quarter sales, as the slowdown in China, currency weakness, and sanctions against Russia took its toll on the business.
The drinks giant behind Smirnoff vodka and Johnnie Walker whisky said yesterday that sales were down 1.5 per cent on an organic basis in the three months to 30 September, its smallest quarter, while volumes fell 3.5 per cent.
China’s anti-extravagance measures have continued to hurt sales in the region, while in Europe, government sanctions against Russia effected results. Diageo has also warned that currency volatility will knock around £95m from full-year operating profits.
However, company insisted the performance was “in line” with expectations and that it expected sales to increase for the full year.
Sales of its higher-priced “reserve” brands rose 10 per cent.