Diageo reports Q3 reported net sales $4.38B, up 2.9% vs. $4.25B last year

Reported net sales for the third quarter increased by 2.9% to $4.4bn, with positive organic growth partially offset by unfavourable foreign exchange and disposals. Organic net sales were up 5.9% in the quarter, with organic volume up 2.8% and positive price/mix of 3.1%. Performance in the quarter was supported by favourable phasing which the company estimates contributed c.4% of Q3 group organic net sales growth, mainly from North America and to a lesser extent Latin America and Caribbean, and is expected to reverse in Q4. All regions delivered positive price/mix except Asia Pacific where continued consumer downtrading and adverse market mix impacted net sales. Debra Crew, Chief Executive, said: “In the third quarter we delivered strong organic net sales growth and are on track to deliver on our guidance of sequential improvement in organic net sales performance in the second half of fiscal 25. We also reiterated our organic operating profit outlook for fiscal 25, including the impact of tariffs based on what we know at this time. We continue to believe in the attractive long-term fundamentals of our industry and in our ability to outperform the market. We view the near-term industry pressure as largely macro-economic driven, with continued uncertainty impacting both the timing and pace of recovery. Consistent with our strategic priorities and our focus on what we can manage and control, we are introducing the first phase of our Accelerate programme. This sets out clear near-term cash delivery targets and a disciplined approach to operational excellence and cost efficiency. It will strengthen Diageo (DEO) by increasing our effectiveness, agility, and resilience. It will also ensure that we are well-positioned to deliver sustainable, consistent performance while maximising shareholder returns; even if current trading conditions persist. We look forward to sharing more detail on Accelerate with our full year results in August.”