Diageo Reports Low Profits Globally
Published on Jul 31 2014 9:11 AM in Drinks
Diageo, the world’s biggest drinks supplier, has reported lower than expected sales as a result of the slowdown in China and other volatile markets. The company also reported a slump in sales in the Irish market from £2.45 billion to £2.25 billion in a year.
Global net sales for the supplier of Guinness and Smirnoff fell by 9% to £10.3 billion according to Reuters, with an average forecast of £10.5 billion.
Diageo chief financial officer Deirdre Mahlan commented on the results: “While we expect those to improve, the top line performance will be dependent, to some degree, on how quickly those economies come back.”
Diageo has been challenged by tax increases in Kenya and a decline in sales of Chinese baiju spirit as a result of government-enforced austerity measures. Its sales volumes fell 5% in Asia and Africa, Eastern Europe and Turkey, and 1% in North America and Latin America, while Western Europe was flat. Sales in Ireland have remained challenging due to excise duty hikes since the recession.
© 2014 - Checkout Magazine by Genna Patterson