Speaking at its annual general meeting held in London yesterday, Paul Walsh, chief executive officer of Diageo, said that the drinks group remained on course to report full-year net sales growth of 6% and operating profit growth of at least 7%.
However, he also warned that during the first quarter, sales of Guinness in Ireland and the UK had slowed, and that the Spanish premium drinks market was weak.
He added that the group had delivered a stronger performance in continental Europe and double-digit top line growth in Russia during the first quarter.
It also gained share in the North American market and delivered further strong top line growth in the international market.
Walsh added: “We ended the 2006 fiscal year with well-positioned brands and a more efficient and effective organisation and we will build on those achievements in the current fiscal year.”