Latin America and the US lift Diageo

Strong sales in Latin America and Caribbean and North America have seen Diageo deliver an overall 5% organic net sales growth in the nine months ending 31 March 2013.

In the quarter ended 31 March 2013, Diageo delivered 4% organic net sales growth with volume down 1%.

In the nine month period organic net sales in Latin America and Caribbean grew by 14% and by 6% in North America; US spirits were the key driver of performance for Diageo in the region.

In Western Europe sales fell by 4%, but the company said that “underlying trends in [the region] remain unchanged.”

Diageo chief executive, Paul Walsh, said: “Our performance in the quarter was robust and again demonstrates Diageo’s strengths, global reach and category breadth and depth. Therefore despite consumer weakness in three markets, Korea, Nigeria and Brazil, Diageo’s performance for the nine months is in line with the first half and our expectations.

“Strong performance from our biggest business, US spirits; the continued growth of spirits in Africa; share gains across our markets in Asia Pacific and double digit growth of Johnnie Walker, Crown Royal, Buchanan’s, and Tanqueray are the highlights of the quarter. Given our market positions and geographic diversity we remain confident that Diageo’s performance continues to be in line with our medium term guidance.”

Although Diageo’s sales in Asia Pacific grew by 4% in the nine month period, the company said that performance in the region was “affected by the comparison against a strong quarter in the prior year due to the timing of price increases and the continued decline of the scotch market in Korea.”

The company also reported that sales had weakened slightly in Nigeria, a key market for the Guinness brand, and that there had been a “short term impact from the elections in Kenya.”