Diageo's Q3 sales up 7%

Published: 05 May, 2011

Diageo's net sales have grown 7% in the quarter ending March 31, with sales up 5% compared to the same nine months of the previous year.

Diageo's net sales have grown 7% in the quarter ending March 31, with sales up 5% compared to the same nine months of the previous year.

Organic net sales in Europe and North America grew by 3% in the first quarter of 2011 with chief executive Paul Walsh describing these markets as "challenging", while international markets grew by 14% and Asia Pacific by 9%.

Diageo said foreign exchange movements are expected to increase its full-year operating profit by £25 million compared to the previous year ? £30 million less than it had forecast.

"Trading in the third quarter was in line with our expectations that the second half would be stronger than the first," said Diageo's chief executive Paul Walsh.

"Overall trading in Europe continues to be challenging although in the quarter stronger price/mix in Great Britain and Russia offset weaker price/mix in Ireland and Greece and a deterioration of the on trade in Spain.

"This overall improving trend is the result of our focus on our priority brands and our strengths in market. We remain confident that our up weighted marketing investment together with the increased investment we have made in emerging markets in the year will continue to deliver improving performance," he added.

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