OPEN APP
Home >Companies >Diageo raises a glass to emerging market growth


Diageo raises a glass to emerging market growth

Diageo raises a glass to emerging market growth

London: Sales at Diageo, the world’s biggest distilled drinks group, were up 6% in the first three months of 2012 with fast-growing emerging markets and a recovery in North America offsetting falling sales in Europe.

The London-based maker of Smirnoff vodka and Captain Morgan rum said on Thursday that despite weakness in Europe its fiscal third-quarter performance was in line with its expectations, and this put it on track to hit its medium-term target which is also for 6%growth.

The British group gained as markets in Latin America, Africa and Asia showed strong demand for its range of drinks, a US recovery gathered steam while in Europe, Spain and Greece were in decline and the UK market disappointed.

“Trading in the third quarter remained strong with the year-to-date performance in line with the first half and our expectations," said chief executive Paul Walsh in a trading update.

This saw the group’s nine-month sales to end-March rise 7%, similar to the increase in its July-December first half, with some 3% coming from price rises.

The nine-month sales picture was led by Latin America and Caribbean with a 18% rise, Africa was up 12%, Asia Pacific 10% ahead and North America 5 percent higher while Europe saw a fall of 1%

Last week Pernod Ricard, Diageo’s biggest rival, reported a 3% rise in its third-quarter sales, with growth in the period limited by the early Chinese New Year and by French consumers stocking up ahead of a tax rise which boosted sales in the closing months of 2011 at the expense of early 2012. Its nine-month sales rose 9 percent

Diageo’s shares have risen around 30% over the last 12 months, outperforming Pernod by some 20% with Diageo’s shares closing on Wednesday at 1,590 pence.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
Edit Profile
My Reads Redeem a Gift Card Logout