Diageo net sales drop by £1.1 billion (approx $1,719,777,322)
on 31/07/14 at 12:46 pmIndustry
Overall the company reported a net profit of £2.25 billion, a drop of 8% on 2013, with net sales falling by 9% to £10.3 billion, while shares in the company dropped from 103.1p to 95.5p a share.
The drop in net sales is representative of a £1.1 billion loss on last year, when the group posted revenues of £11.4bn.
The company said its regional performance had been “mixed” with China hit particularly hard due to continued “anti-extravagance” measures resulting in an international slow down of sales.
Ivan Menezes, chief executive of Diageo, said: “This year our business has faced macroeconomic and market specific challenges that have impacted our top line performance. But we have gained share and expanded margin while continuing to invest in our brands, our markets and our people to create a stronger business that will deliver on the long term growth opportunities of this attractive industry.
“Our regional performance has been mixed. In North America we have again delivered top line growth and significant margin expansion and our Western European business is now stable. Emerging market weakness, often currency related, but also including some specific issues, such as the anti extravagance measures in China, has led to weaker top line growth.”