Volumes for the nine-month period also fell by 1.7% and by 0.8% in the January to March 2015 period.
This compares to a 0.3% organic net sales growth for the nine months to 31st March 2014 accompanied by a volume decline of 2%.
Net sales for the half-year to 31st March were down 0.2%.
While African sales showed growth of 6.2% over the nine months, only North America showed positive net organic growth with a 0.2% sales increase but this compares with a 3.7% increase for the same three quarters to the 31st March 2014.
European net sales for the nine months were down 0.5% and Latin America & Caribbean sales fell 3.3% over the nine months.
According to a statement from Diageo, “In Europe, following a broadly flat performance in the first half, the performance in the quarter saw a high single digit net sales decline in Great Britain reflecting the comparison against last year when a buy-up ahead of an expected duty increase brought forward sales into the third quarter”.
Diageo decreased its net borrowings by £404 million from £10.668 billion at 31st December 2014 to £10.264 billion at 31st March 2015 “primarily as a result of £265 million net cash proceeds received from sale of Bushmills less the acquisition cost of the 50% equity interest in Don Julio that Diageo did not already own”.
The group completed this transaction on 27th February 2015.
Diageo’ s Chief Executive Ivan Menezes commented, “Our performance in the quarter reflects continued tough conditions in the emerging markets and subdued consumer demand in some developed markets”.
Cap: “Our performance in the quarter reflects continued tough conditions in the emerging markets and subdued consumer demand in some developed markets” – Diageo Chief Executive Ivan Menezes.