(Source: Datamonitor)
Diageo, a British manufacturer of alcoholic beverages, has reported that its net sales for the third quarter ended March 31, 2009 decreased 7% against the comparable period of 2008 on organic basis, driven primarily by the planned stock reductions in Diageo's US spirits and wine distributors.
On a reported basis, net sales increased by 16% in the nine months ended March 31, 2009 and by 11% in the quarter ended March 31, 2009, against the comparable prior period in each case. Growth was mainly driven by the impact of exchange rates movements since the comparable period, according to the company.
Net assets were GBP4.19 billion at March 31, 2009, compared to GBP4.62 billion at December 31, 2008.
Paul Walsh, CEO of Diageo, said: "Through our actions, including the reduction in trade stock levels which we orchestrated across many markets in the first half and delivered in our US spirits and wine channel in the third quarter, our focus on marketing efficiency and the implementation of our restructuring program, we are taking the steps necessary to put ourselves in a position to emerge from this global downturn as an even stronger business.
"Despite this more challenging trading environment we continue to forecast organic operating profit growth for the year ended June 30, 2009 in the range of 4% to 6%. Continued positive exchange rate impacts and the lower tax rate mean that growth in reported earning per share will be double digit."
A service of YellowBrix, Inc.
