Diageo Q1 Performance In Line With Expectations
British beverages giant Diageo Plc Thursday said its performance for the three months ended 30 September 2014 was in line with expectations, with organic net sales down 1.5% and volume down 3.5%, as Diageo again drove good mix from the stronger performance of its reserve brands, up 10%.
On a reported basis, net sales declined 1.7% in the quarter as a result of the organic movement, negative foreign exchange, mainly in respect of the devaluation of the Venezuelan bolivar against the rate used in the first half last year, offset by the effect of full consolidation of United Spirits Limited or USL from 2 July 2014; and the termination of the transitional arrangements following the disposal of Jose Cuervo.
Ivan Menezes, Chief Executive of Diageo commented, "Consumer trends in most markets are unchanged and our first quarter performance is in line with our expectations given the prior year comparison of the performance of our US Spirits & Wines business and the destock we have implemented in South East Asia.
We expect full year top line growth to improve on last year's performance. Our focus on our six performance drivers continues to build our capabilities and deliver the cultural change I want to see across the business. I am confident we are on the road to realise our full potential." (dpa)
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