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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.
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Damn, we should all drink more to boost their profits. There are really not enough alcoholics these days.
/sarcasm
Support IRISH businesses & buy the wonderful Dungarvan Brewing Co’s Blackrock Stout.
Sick of all the English comments! Guinness is brewed in Ireland, it’s owned by Diageo Ireland, it employs Irish people, pays taxes in Ireland. It’s currently expanding its Irish brewery. Don’t drink it if you don’t like it but stop with all the English bull, I bet the same people making these comments shop in Tesco, M&S, Boots, Argos, Topshop……..
If you’re offered a choice between an artisan-brewed Irish product and mass-produced product being sold by a multi-national corporation that’s complaining they can’t pour it down the Third World’s throat fast enough, whose product would you select?
Just wondering…
Their products are muck. All hail the micro-brewers!
Legalise the herb , obscene sale figures for alcohol a far more addictive and destructive drug , and nobody batts an eyelid .
I wonder if the rest of the world knew we were using a substance banned in most countries(fluorosilic acid,a chemical waste byproduct that the government was lobbied by chem companies to put in our water) in the brewing of the black stuff,I’m sure the sales would drop even more dramatically
Except they use their own water supply. Purified & not fluoridated.
*Rolls eyes*
Maybe because all the irish are either in OZ or in the states!!
That’s impossible. I drink so much of it.
Maybe if they advertised they’re an Irish brand instead of some old Italian like man
But they’re British!
In reference to Guinness sorry about that
Guinness is English owned by diagio
they are not Irish .
what defines being ‘irish’ these days though?
Another reason why we should leave Europe! They’re giving us a bad rep!
Alco and proud!!!
It’s never black & white is it!!
Heard European sales have only been Mid-Strength for a while and the Irish market is Flat but the Cream always comes to the top!!!
Give me a Beamish any day over that bland homogeneous muck..
……
And no, I’m not from Cork..
have your say