European sales at Guinness maker Diageo down in Europe, up in the US
GUINNESS maker Diageo has reported a 3pc rise in quarterly organic net sales today, as growth in the Americas offset a decline in western Europe.
Diageo said in the first quarter to September 30, organic net sales rose 10.9pc in Latin America and the Caribbean, 5.1pc in North America, 1.3pc in Africa, eastern Europe and Turkey and 0.6pc in Asia Pacific.
Sales fell 1.1pc in western Europe, and the maker of Johnnie Walker whisky and Smirnoff vodka said it expects a low single digit net sales decline for the full year in the region.
At current spot rates, the company said foreign exchange would hurt operating profit for the fiscal year ended in June 2014 by £165m.
On a reported basis, net sales were flat, due to the loss of the Jose Cuervo tequila brand, which Diageo stopped distributing earlier this year.
Sales volume rose just 0.6pc.