Diageo full-year sales flat

Diageo, the world’s largest spirits company, has reported flat sales in the past year and shipment volumes down 1pc.

Diageo, which has just announced its financial results for the year to June, says sales of Guinness in Ireland rose by 2 percent during the year – this growth was supported by innovations such as the Brewer’ Project at St Jame’s Gate.

“Stronger volume growth will deliver an improved top-line performance” this year, Chief Executive Officer Ivan Menezes said in a statement Thursday.

Over those three years, its operating margin should expand by 100 basis points, Diageo said, as productivity gains are expected to free up a further 500 million pounds ($780 million). That was below analysts’ average estimate of 90.3 pence.

Net sales were boosted by £949m as a result of acquisitions including United Spirits and the remaining 50pc of tequila brand Don Julio.

The maker of Smirnoff vodka has appointed Chief Financial Officer Deirdre Mahlan to run the North America division and bolster earnings from the U.S., the company’s largest region.

Meanwhile, sales of Baileys – the most popular cream liquer in Ireland – were unchanged locally but fell by 4 per cent globally. Diageo owns a minority stake in Moet Hennessy, a joint venture with French luxury goods maker LVMH Moet Hennessy Louis Vuitton SE which owns Hennessy cognac and Moet & Chandon champagne. The firm said that this was due to last year’s duty increase.