Diageo Organic Net Sales Down 0.7% In Q3 - Quick Facts

(RTTNews) - Brewer Diageo Plc. (DGE.L, DEO) Thursday said net sales on an organic basis were down 0.7 percent in the third quarter, and slipped 0.3 percent in the nine-month period.

In the 9 months, reported net sales grew 4.6 percent. Acquisitions, principally of United Spirits Limited, contributed 700 million pounds, partially offset by an adverse impact of currency movements of 298 million pounds and a reduction of 28 million pounds due to disposals.

At March 31, 2015, net assets were 8.691 billion pounds, while it was 8.696 billion pounds at December 31, 2014. Net borrowings decreased 404 million pounds, primarily due to 265 million pounds net cash proceeds received from sale of Bushmills less the acquisition cost of the 50 percent equity interest in Don Julio that Diageo did not already own.

Ivan Menezes, CEO, said, "Our performance in the quarter reflects continued tough conditions in the emerging markets and subdued consumer demand in some developed markets...We can realise Diageo's full potential and deliver our performance ambition."