Bottles of Smirnoff vodka are displayed on a shelf in a supermarket in Sarajevo, Bosnia and Herzegovina October 29, 2024. REUTERS
May 6 (Reuters) – Diageo the world’s top spirits maker, posted a surprise 0.3% growth in quarterly organic net sales on Wednesday, as strength in Europe and Latin America offset weakness in the U.S., its largest market.
The Johnnie Walker whisky and Guinness beer maker maintained its fiscal 2026 forecast and said it was mindful of the impact of the ongoing conflict in the Middle East on energy, supply and distribution.
CEO Dave Lewis, who earned the nickname “Drastic Dave” for his cost-cutting measures at Tesco and Unilever, has wasted no time in his new role at Diageo, slashing the firm’s sales forecast and halving its interim dividend in February.
“North America remains our biggest challenge, where market conditions are soft and our offer needs to be more competitive. Actions are already underway to address this,” Lewis said in a statement.
Analysts had expected a 2.3% decline in organic net sales for the three months ended March, according to a company-compiled poll.
Reporting by Yadarisa Shabong in Bengaluru; Editing by Mrigank Dhaniwala
