• Group sales in Q1 down by 1.5%
  • Volumes in three months to end of September fall by 3.5%
  • Asia Pacific drags on performance, sales decrease 7.4%
  • North America, Africa flat, Europe, Lat Am slip
Diageo saw sales and volumes fall in its first quarter

Diageo saw sales and volumes fall in its first quarter

Diageo has reported first-quarter sales that are "in line with (its) expectations" this morning.

Sales in the three months to the end of September fell by 1.5% year-on-year, with Asia Pacific proving the biggest drag. While North America posted a sales lift of 0.1%, Africa was flat. Both the Europe and Latin American & Caribbean divisions saw sales decrease by 1.4% in the period.

The sales performance follows a tough set of full-year results, announced in July.

Chief executive Ivan Menezes:

“Consumer trends in most markets are unchanged and our first quarter performance is in line with our expectations, given the prior-year comparison of the performance of our US spirits & wines business and the destock we have implemented in South-East Asia.

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. Western Europe is now stable and I continue to expect full-year performance to be flat, although there will be quarterly fluctuations around that level.

Emerging markets’ performance remains weak with further currency weakness in a few markets and specific geopolitical situations in some areas. However our brand performance has been strong in many markets including Turkey, East Africa, India and Colombia.

We expect full-year, top-line growth to improve on last year’s performance. Our focus on our six performance drivers continues to build our capabilities and deliver the cultural change I want to see across the business. I am confident we are on the road to realise our full potential."

Diageo's shares opened up 2.1% following the update. At 0809, they were trading at GBP17.45.

For a breakdown of the Q1 performance by region, click here.

A round-up of analyst reaction to the figures can be found here.

To read the company's official release, click here.