Diageo continues to make further sales gains in US

DIAGEO shareholders were told at the group’s annual general meeting in London yesterday that the outlook for sales in the US, the company’s most important market, were steadily improving.

Chief executive Paul Walsh told the agm: “Looking to the future, while the outlook for a sustained recovery of world economies is still unclear Diageo has demonstrated its ability to generate growth even in challenging times.

“In addition, signs of improvement are evident in some markets, particularly in the United States, which is now our most important market".

Apart form its strong Irish presence through the Guinness Group and Baileys, Diageo’s global brands include Johnnie Walker whiskey and Smirnoff vodka.

Mr Walsh added that share gains, even in difficult markets such as Latin America, provided further evidence that Diageo was well positioned to achieve superior performance.

He said that while recognising that the firm was only three months into the current financial year, it had not seen any worrying trends emerging that would lead it to change its view on the future prospects for the group over the next 12 months.

On September 4 Diageo reported a 6% rise in annual pre-tax profits. That was achieved against a background of lower than expected sales and demonstrated a growing resilience within the increasingly focused drinks consortium.

At the time it said it saw signs of trade improving in North America, Britain and Spain, the chief executive’s statement to shareholders at yesterday’s meeting confirms continuing progress by the group and is also an indication that the US, is starting to recover economically.

Back in September it indicated trading had ticked up in North America, Britain and Spain, but said it faced tough trading in Ireland for its beer business and in Latin America from currency and political upheavals.

The firm is the world’s number one wine and spirits group.