Diageo toasts new markets as sales grow
DIAGEO, the world’s biggest distilled drinks company, yesterday reported a third quarter of sales growth despite disappointing trading in Europe.
The group posted a six per cent sales rise, excluding acquisitions, which it put down to a three per cent growth in the volume of drinks sold as well as price increases and a trend of customers buying more expensive products.
Diageo, whose brands include Smirnoff, Captain Morgan, Baileys and Guinness, also raised its glass to emerging markets where it saw continued rapid growth.
In the nine months to 31 March, sales in Latin America and the Caribbean climbed 18 per cent, while Africa and Asia Pacific grew 12 and 10 per cent respectively. North American sales gained an extra five per cent.
But sales fell by one per cent in Europe, dragged down by economic conditions in Spain and Greece despite a strong performance in Germany.
Diageo boss Paul Walsh said: “Our year to date performance continues to demonstrate that Diageo is well positioned with our balance of businesses across categories.”
Shares rose 1.5 per cent to £16.15.