Organic net sales in Western Europe again disappointed showing a 0.4% decline although the decline had reduced on the full 1.0% decline in the last six months of 2013.
Latin America and the Caribbean proved the most resilient market for Diageo with net organic sales growing 5.7% in the nine months to 31st March. The US, Diageo’s largest market, also grew net sales by 3.7%.
“Our performance reflects the challenging environment we are operating in,” commented Diageo Chief Executive Ivan Menezes, “Consumers in North America are most resilient as are consumers of our reserve brands in most markets.
“In Western Europe the economy, consumer confidence and our business are all improving slowly but consistently.
“In the emerging markets currency volatility and caution about the outlook for GDP growth are negatively impacting business and consumer confidence.”