Scotch sales boost for Diageo
DIAGEO Plc, the world's largest distiller, reported third-quarter revenue growth that beat analysts' estimates as sales of Scotch whisky in emerging markets offset sluggish demand in Europe.
Organic sales, which exclude acquisitions and disposals, rose 7pc in the three months to March 31. That outpaced the median estimate of eight analysts for growth of 3.3pc and the 4pc growth reported in the first half.
"Trading in the third quarter was in line with our expectations that the second half would be stronger than the first," Paul Walsh, Diageo's chief executive officer, said yesterday.
"We remain confident that our upweighted marketing investment together with the increased investment we have made in emerging markets in the year will continue to deliver improving performance."
Diageo is among distillers seeking to grow in emerging markets as consumers in developed economies including the US and Europe spend less.
Nine-month organic net sales rose 5pc, as purchases of drinks including Johnnie Walker whisky in Asia offset a 3pc decline in Europe, the company said. (Bloomberg)