Diageo shares drop as sales dip

Diageo, the world’s largest spirits maker, has reported a drop in quarterly sales, despite an improvement in north America, after being hurt by challenges in several emerging markets.

The maker of Johnnie Walker whiskey, Smirnoff vodka and Guinness stout said net sales in the three months to the end of March, the third quarter of its financial year, fell 0.7%, whereas many analysts had expected an increase.

The company, whose global rivals include Pernod Ricard , Remy Cointreau and Beam Suntory, blamed the timing of shipments in South America, currency devaluations, plus the impact of retailers and distributors reducing inventories to more closely reflect expected demand.