Net assets were £4,225m at 30 September 2009, having been £3,936m at 30 June 2009 reflecting operating profit in the period, some movements on reserves and a small impact from exchange rate movements.
Paul Walsh, chief executive of Diageo, said: “As we anticipated, consumer trends across our markets remain broadly unchanged since the year-end. Therefore net sales in the first quarter of the new financial year have been weak when compared to the strong performance of the first quarter last year.
“In the first quarter of last year, stock levels increased. However this year, stock levels haven’t risen in the first quarter and in our biggest market, North America, stock levels in our US spirits distributor channel are below those held at 30 June 2009.
“The restructuring programme is on track to deliver the forecast benefit of a £120m reduction in costs year on year. In addition, we continued to benefit from efficiencies in marketing spend and media rate deflation.
“The year has started as we thought it would and we reiterate our guidance for low single-digit organic growth in operating profit in fiscal 2010.”
Source: Diageo
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