GLOBAL: Diageo bolstered by Q1 sales rise
Diageo reports strong sales in Q1
Diageo narrowly beat its own guidance on net sales for the first quarter of its fiscal year, with all business regions reporting growth.
Diageo said today (19 October) that net sales rose by 9% for the three months to the end of September. The increase, which excludes currency swings and includes GBP29m (US$45.6m) of extra sales from newly-acquired Mey Icki, narrowly beat the Smirnoff distiller's initial guidance.
Emerging markets in Latin America, Asia Pacific and Africa continued to drive the drinks maker, with sales in these regions up by 30%, 14% and 9% respectively.
Meanwhile, there was better news in Europe: Diageo's sales in the hard-hit region rose by 6% on the same quarter of last year, thanks to Eastern European countries, notably Russia, and Germany. In North America, the group reported sales up by 5%, despite a 2% drop in volumes.
Despite the improvement in Europe, Diageo's CEO, Paul Walsh, decribed consumer trends as being "broadly unchanged".
While he said that the group is alert to the fragile global economy, he remains upbeat about the drinks maker's fiscal year. "We continue to expect that net sales growth for the first half will improve on that delivered in fiscal 2011," he said.
On the operating profits level, Diageo said that it expects a bigger hit from currency swings in its full-year than originally expected. No specific guidance was given for full-year operating profits.
For the company's announcement, click here.
In these modern times, as the world gets smaller, Diageo would appear to be embracing the softly-softly approach of the post-colonial age....
Diageo has confirmed the appointment of a permanent chief procurement officer....
The International Center for Alcohol Policies (ICAP) has released a set of reports looking at the issue of drink-driving in four emerging markets....
- SABMiller & Meantime: Notes for the New Owner
- Comment - How to Target Cognac's Mok Generation?
- Are Coca-Cola, A-B InBev at a FIFA Crossroads?
- Focus - The Prosecco shortage that isn't
- Interview - Illva Saronno CEO Augusto Reina
- Whyte & Mackay takes on Flor de Caña in UK
- Diageo takes Baileys, Gordon's marketing in-house
- Carlsberg cuts 180 staff
- Suntory to buy Japan Tobacco beverage unit
- Mixto Tequila poised for "golden age"
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Africa: The Final Frontier for Beer
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review