Spirits giant Diageo today reported a 0.7 per cent decline in sales for the third quarter, reflecting subdued customer demand and tough trading conditions in emerging markets.
The maker of Johnnie Walker whisky, Guinness stout and Smirnoff vodka also said sales in Great Britain saw a “high single-digit” decline during the three months to 31 March, reflecting tough comparisons with last year, when demand was boosted ahead of an expected rise in duty.
Overall sales in Europe were down 1.3 per cent in the quarter, while the Latin America and Caribbean region suffered a 10.2 per cent slide.
Chief executive Ivan Menezes said: “Our performance in the quarter reflects continued tough conditions in the emerging markets and subdued consumer demand in some developed markets.”
Wyn Ellis, analyst at Numis Securities, said the period just ended “is not a big quarter” for Diageo “but the net sales trends overall are, we believe, a touch disappointing”.