Diageo, the world's biggest maker of alcoholic drinks, said today that sales fell in the third quarter of its financial year but it maintained profits growth guidance despite the global downturn.
Diageo, the maker of Guinness beer, Baileys liqueur and Smirnoff vodka, said in a trading update that sales sank by 7% in the three months to the end of March, compared with the same time the previous year.
'As we anticipated trading in markets around the world has weakened,' Diageo's CEO Paul Walsh said in the statement.
'In particular there has been a significant decline in the Russian market from the beginning of January and the global travel retail business continues to be adversely affected by the economic conditions,' he added.
'However, through our actions, including the reduction in trade stock levels, our focus on marketing efficiency and the implementation of our restructuring programme, we are taking the steps necessary to put ourselves in a position to emerge from this global downturn as an even stronger business,' he said.
Diageo confirmed its profits guidance for the current financial year which runs until the end of June.
'Despite this more challenging trading environment we continue to forecast organic operating profit growth in the range of 4-6%,' Mr Walsh said.
