Organic net sales decline was most significant in Latin America and Caribbean (LAC) with a -21.1% drop while North America was also -2.5% down.
“Fiscal 24 was impacted by materially weaker performance in LAC,” said Diageo CEO Debra Crew. “Excluding LAC, organic net sales grew 1.8%, driven by resilient growth in our Africa, Asia Pacific and Europe regions. This offset the decline in North America, which was attributable to a cautious consumer environment and the impact of lapping inventory replenishment in the prior year."
In response to LAS’s poor performance, Crew said the company has strengthened its consumer insights, redeployed resources towards route-to-market and generated $2.6 billion in free cash flow while increasing strategic investments.
“We are confident that when the consumer environment improves, the actions we are taking will return us to growth,” added Crew.
However, overall sales of its beer brands grew 18% globally over its last fiscal year, primarily driven by Guinness. The Irish stout saw 15% organic net sales growth globally and was the fastest growing imported beer in the US on-trade over the past 12 months.
Between fiscal 22 and 23 female consumption in the UK grew 27% and in Europe the sales of Guinness 0.0 doubled in fiscal 24
“Guinness 0.0 now accounts for 3% of the brand’s total sales, we literally cannot make enough of it,” said Crew.
Full results for FY24 are available here.
