Diageo said it had overcome substantial challenges to report 5% global net sales growth to the year ending 30 June, as it announced its full year results.
The global drinks giant reported that organic net sales had remained flat however, in a year that saw it purchase United Spirits, and the remaining 50% stake in tequila brand Don Julio. Indian company United Spirits is the world's second-largest spirits company by volume. Diageo said it had been working to transform its global footprint, especially to gain share in emerging markets, such as Africa.
Beer net sales grew 4%, with Guinness flat overall, but up 3% in developed markets following a number of successful innovations, such as the Brewers Project which spawned craft-a-like brands Guinness Dublin Porter and Guinness West Indies Porter. Diageo said its brand communications focusing on the credentials of Guinness the brewer had proved successful.
Commenting on the results, chief executive Ivan Menezes said: 'This year we made further changes to build strong, sustained performance including embedding our sell out discipline, improving cash conversion and strengthening our route to consumer. We have consistently applied a long term perspective in making these changes, despite the short term challenges we have faced from an external environment where currency volatility continues to impact the emerging market consumer.'