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Diageo returns to sales growth in line with estimates

Published 28/07/2016, 07:21
© Reuters. Guinness branding is seen outside a pub in London
DGE
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LONDON (Reuters) - Alcoholic drinks maker Diageo (L:DGE) reported higher sales for its just-ended financial year, returning to growth after two flat years marred by issues such as an emerging market slowdown and a shift in U.S. consumer tastes from vodka to bourbon.

The maker of Johnnie Walker Scotch whisky, Smirnoff vodka and Guinness beer on Thursday said net sales grew 2.8 percent on a like-for-like basis in the year ended 30 June.

Earnings per share, excluding one-time items, were 89.4 pence.

Analysts on average were expecting sales growth of 2.8 percent and earnings of 88 pence per share, according to a company-supplied consensus.

Looking ahead, Diageo stood by its prior forecast for sales to grow at a mid-single-digit rate starting this year.

© Reuters. Guinness branding is seen outside a pub in London

Like-for-like sales first slowed in 2013 and were roughly flat in 2014 and 2015.

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