Diageo Sales Fall as Demand Remains Soft in Key Markets

Slowing sales in North America and Latin America impact performance

Johnnie Walker sales decline globally

LONDON, July 29 (Reuters) - Spirits maker Diageo reported a 14% decline in sales for the 12 months to the end of June, marking its first yearly sales decrease since 2020.

The company's net sales fell to £20.3 billion during the period, as consumers shifted towards more affordable alternatives. This decline was driven by a 2% drop in global sales of its flagship Johnnie Walker brand and a 10% decline in North America, the company's largest region.

Demand for Diageo's products remained soft in North and Latin America, as the company had warned in November that sales in these regions would continue to face challenges.

Despite the sales decline, Diageo expressed confidence that demand would eventually recover. The company's shares rose slightly in early trading on the London Stock Exchange.