Diageo on course to hit targets as US spirits remain strong

(Source: Reuters)

Diageo, the alcoholic beverages company, has released an interim management statement for the nine months ended 31 March (release). The firm reports that organic net sales growth is up by five per cent and volume has risen by one per cent.

The company said that underlying trends in Western Europe remained unchanged, and this was the only region to see a decline, as organic net sales growth fell by four per cent.

Chief executive Paul S Walsh commented:

Our performance in the quarter was robust and again demonstrates Diageo's strengths, global reach and category breadth and depth. 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.