Diageo’s sales unexpectedly rose in the latest quarter as growth in Africa and Latin America was enough to offset significant weakness in the US.The maker of Johnnie Walker whisky and Guinness stout said Wednesday that organic net sales rose 0.3% in period, beating 2.3% slump expected by analysts surveyed by Bloomberg.
Diageo kept its guidance for this fiscal year unchanged, with organic net sales expected to decline between 2% and 3%.
Like rival drinks makers, Diageo is grappling with persistent weak demand for beer and spirits in critical markets, including the US. Consumers are moderating their alcohol intake to improve their health and in response to higher living costs from US President Donald Trump’s trade tariffs and conflict in the Middle East.
The distiller is also trying to overcome self-inflicted errors such as poor service levels to some customers since Covid and an intense focus on premium drinks that has left the company underrepresented in growing parts of the market, like “ready-to-drink” canned cocktails.
