May 6 (Reuters) - Diageo posted 0.3% growth in quarterly organic net sales on Wednesday, driven by strong demand for its Guinness beer in Britain and Ireland and customers in Latin America and the Caribbean stocking up ahead of the soccer World Cup.
Analysts had expected a 2.3% decline in organic net sales for the three months ended March, according to a company-compiled poll.
The world's top spirits maker, however, said that growth was partly offset by weakness in the U.S., its largest market. Still,
North America's organic sales decline of 9.4% in the quarter came in better than analysts had forecast.
"North America remains our biggest challenge, where market conditions are soft and our offer needs to be more competitive. Actions are already underway to address this," CEO Dave Lewis, who took over in January, said in a statement.
The Johnnie Walker whisky maker maintained its fiscal 2026 forecast and said it was mindful of the impact of the ongoing conflict in the Middle East on energy, supply and distribution.
Lewis, who earned the nickname “Drastic Dave” for his cost-cutting measures at Tesco and Unilever, has wasted no time in his new role at Diageo, slashing the firm’s sales forecast and halving its interim dividend in February.
Diageo in February had warned that 2026 organic sales would fall by 2% to 3%.
Lewis has been tasked with reducing debt and reviving growth at the world’s top spirits maker as demand for spirits suffers due to the soaring cost of living, the rise of weight-loss drugs and changing drinking preferences among younger consumers.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Mrigank Dhaniwala and Elaine Hardcastle)
