GLOBAL: Diageo Q1 sales drop, holds guidance
Diageo has reported a 6% fall in sales for its first fiscal quarter, but the drinks giant maintained profits guidance for the year.
Ongoing destocking by distributors in the US contrinuted to a 6% fall in like-for-like sales for the three months to 30 September, compared to the same period last year, Diageo said ahead of its Annual General Meeting today (14 October).
"As we anticipated consumer trends across our markets remain broadly unchanged since the year-end," said Diageo CEO Paul Walsh, who watched the group's share price fall following the announcement.
"In the first quarter of last year stock levels increased. However this year, stock levels have not risen in the first quarter and in our biggest market, North America, stock levels in our US spirits distributor channel are below those held at 30 June 2009."
Walsh added: "The restructuring programme is on track to deliver the forecast benefit of a GBP120m (US$192m) reduction in costs year-on-year. In addition, we continued to benefit from efficiencies in marketing spend and media rate deflation."
For just-drinks' highlights of Diageo's first quarter, click here.
As Heineken CEO Jean-Francois Van Boxmeer last week hailed the opening of the firm's brewery with Diageo in South Africa as "a victory for consumer choice", it is clear that a new battle for supremacy...
Diageo is to hold a series of games for consumers in the US in order to promote its Jose Cuervo Tequila brand....
- Coca-Cola pressure builds as bid rumours swirl
- Gin: Plymouth's from Plymouth, London's from...?
- Comment - Diageo Making the Best of a Bad Job?
- Comment - IPO Launch a Tonic for Fever-Tree
- How Modern Marketing Compounds My Twitter Shame
- NPD - Moët Hennessy’s Glenmorangie Dornoch
- Pernod blames rule changes for Plymouth GI drop
- William Grant unveils bespoke Glenfiddich website
- Anheuser-Busch InBev cuts jobs in US shake-up
- China to axe duty on Australian wine
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Early Signals: future scenarios that will drive consumption and product innovation over the next five years
- The IWSR Global Trends Report 2014
- Global Beer Opportunities: Beyond Standard Lager
- Global Cognac insights - market forecasts, product innovation and consumer trends research