Diageo Sales Drop By 1.5% In First Quarter, But Company Projects Better Results Ahead
Source: Shanken News Daily
While Diageo’s organic net sales declined by 1.5% in its first fiscal quarter, the drinks giant says it expects improved performance—and positive sales growth—over the next three quarters of the year. Diageo’s overall drinks volume fell by 3.5% during the three-month period ended September 30, but that dropoff was partially offset by a positive price mix—driven by double-digit sales growth for its reserve brands.
Diageo eked out a 0.1% organic net sales gain in North America in its first quarter. It was the only region in which the London-based company experienced sales growth. Still, the market’s conditions remain challenging. “In North America, consumer demand for mainstream brands is still constrained by weak consumer confidence in average income households while our reserve brands and our innovations continue to perform well, as they do globally,” said Diageo CEO Ivan Menezes.
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