Drinks giant Diageo Plc. (DEO,DGE.L) and brewer SABMiller Plc. (SAB.L,SBMRY.PK) Thursday reported growth in sales. SABMiller said the group's overall financial performance for the full year was in line with its expectations.
Diageo said it delivered 5 percent organic net sales growth with 1 percent volume increase in the nine months ended March 31, which was in line with the first half performance of fiscal 2013.
In the third quarter, Diageo delivered 4 percent organic net sales growth with volume down 1 percent and strong price/mix.
Reported net sales grew 7 percent in the quarter benefiting from the acquisition of Shui Jing Fang and Ypióca and a small positive foreign exchange impact. Net sales growth in the nine months was 6 percent.
Diageo's US spirits business again delivered a strong performance in the quarter and underlying consumer trends were unchanged from the first half.
Paul Walsh, Chief Executive of Diageo, said, ''Strong performance from our biggest business, US spirits; the continued growth of spirits in Africa; share gains across our markets in Asia Pacific and double digit growth of Johnnie Walker, Crown Royal, Buchanan's, and Tanqueray are the highlights of the quarter.''
For the nine-month period, North America reported a 6 percent increase in net sales, Africa, Eastern Europe and Turkey a 9 percent increase and Latin America and Caribbean delivered a 14 percent increase. Net sales growth was 4 percent in the Asia Pacific while it dropped 4 percent in Western Europe.
"Given our market positions and geographic diversity we remain confident that Diageo's performance continues to be in line with our medium term guidance," Walsh added.
In a trading update for the 12 months to March 31, SABMiller said its revenue for the full year grew by 7 percent on an organic, constant currency basis. Group revenue per hectolitre or hl was up 3 percent, reflecting excise-driven price increases and the impact of regional mix.
Including the impact of the Foster's transaction and other acquisitions and disposals, and after adverse currency translation effects, reported group revenue for the year climbed 10 percent.
Lager volumes on an organic basis advanced 3 percent for the full year and Soft drinks volumes were up 4 percent.
For the fourth quarter, group revenue grew 4 percent and group revenue per hl was up 1 percent, on an organic, constant currency basis. Lager volumes grew 4 percent and Soft drinks volumes were up 3 percent .
Latin America's lager volumes advanced 3 percent, with a 1 percent drop in the fourth quarter. Volume performance in the fourth quarter was impacted by softer economic conditions and a December 2012 price increase in certain markets.
In Europe, full-year lager volumes rose 6 percent with fourth quarter volumes up 3 percent. Volume growth was delivered through successful launches of brand and pack innovations, in spite of a challenging economic backdrop, SABMiller said.
MillerCoors' US domestic sales to retailers fell 2 percent, with a 3.3 percent decline in the fourth quarter, on a trading day adjusted basis, amid weaker industry performance.
Full-year lager volumes in Africa grew 6 percent despite cycling strong comparatives, with the final quarter reporting a 9 percent increase. In Asia Pacific region, the growth was 6 percent for the year and 12 percent for the quarter.
SAB.L is down 0.6 percent in early morning trading at 3320.50 pence.
DGE.L is losing 1.2 percent at 1,951.59 pence.
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