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Diageo's US problems temper sales boost from Guinness, World Cup
The spirits maker posted 0.3% organic net sales growth and maintained annual forecasts, though North American sales fell 9.4%, the company said.
- On Wednesday, Diageo reported 0.3% organic net sales growth, confounding forecasts for a 2.3% decline, as shares in the British group rose more than 6% in early trade.
- Strong demand for Guinness in Britain and Ireland, alongside World Cup-related stocking in Latin America and the Caribbean, supported the modest sales gain.
- North American sales fell 9.4%, remaining the company's biggest challenge, as CEO Dave Lewis cautioned it would be "flippant" to claim the market is on the mend.
- Nicknamed "Drastic Dave" for past cost-cutting, Lewis moved quickly in February to halve the interim dividend, with a full strategy expected in August.
- Spirits makers face added risks from the Middle East conflict and Iran war fallout, which threaten to drive up input costs for glass bottles, RBC Capital analyst James Edwardes Jones noted.
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20 Articles
Evening StandardReposted by 
The Independent
The IndependentDiageo sales grow unexpectedly as Guinness boom helps offset US weakness
Shares in the company lifted higher on Wednesday morning as a result.
·London, United Kingdom
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Total News Sources20
Leaning Left4Leaning Right2Center5Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 36%
C 46%
R 18%
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