Diageo has Thirst for US Growth

25 Jan 2017 --- Diageo has reported that sales were up 4.4 percent in the six months ending December 31, helped by improvements in its business in the US. Overall, net sales came in at £6.4bn ($8.1bn) in the period, helped by a favorable exchange rate. The world’s largest distilled drinks company, which makes Johnnie Walker Scotch and Smirnoff vodka, said sales in North America grew three percent in the period.

The strongest performers were North American whisky, scotch and tequila.

North America is the largest premium drinks market in the world and accounts for around one-third of Diageo’s net sales.

In Europe, sales were up 5 percent with continental Europe the main contributor to its jump in sales.
Johnnie Walker and Baileys performed strongly while sales of Guinness were up two percent. 

But in Russia, volumes were down by seven percent on the back of price rises.

Diageo said it remains confident it can achieve its full year goal of "consistent mid-single digit top line growth and 100 basis points of organic operating margin improvement in the three years ending 30 June 2019".

Analysts broadly welcomed the results and shares in Diageo were up 5 percent to 2.242 pence.