Diageo’s sales fall due to excise hike

GUINNESS, Bailey’s and Smirnoff producer Diageo’s sales of its products have fallen by 5% in Ireland as a result of an increase in excise duties imposed by Finance Minister Charlie McCreevy, the company claimed yesterday.

Global drinks group Diageo, who employ 2,800 in Ireland, yesterday said its geographic diversity and brands have provided a firm platform for top and bottom line growth even in the challenging environment which international consumer goods companies have faced in the last 12 months. The company said trading conditions have remained tough compounded by the Iraqi conflict and SARS.

However, the full year organic operating profit growth is currently anticipated to be marginally better than the 6% achieved in the first half of the year.