Britain’s Diageo Plc, the world’s largest spirits maker, increased revenue by 2.9% to $4.376bn in the third quarter of fiscal 2025 (January-March) from $4.253bn in the same period a year earlier, according to reports.
Organic growth (excluding changes in foreign exchange rates and business buy/sell) was 5.9%. Sales in organic terms were up 2.8%.
North America reported a 5.9 per cent rise in revenue (up 6.2 per cent in organic terms) and Latin America a 12.8 per cent rise in revenue (up 28.5 per cent). Meanwhile, Europe recorded a decline of 1.3% (down 0.4%), Asia Pacific 0.2% (up 1.6%) and Africa 4.1% (up 10.1%).
For the first nine months of the fiscal year, the company grew revenue by 0.4% to $15.277bn, with organic growth of 2.4%. Sales volume increased 0.6%.
Diageo announced the first phase of a programme aimed at creating a more flexible operating model. The company is targeting free cash flow of around $3bn from next fiscal year, driven in part by cost reductions of around $500m.
In addition, Diageo reiterated its forecast that it expects a slight decline in operating profit in 2025.
The company’s stock price is down 0.2% during trading on Monday. Diageo’s market value has fallen 23% in the last twelve months, while the FTSE 100 stock index has added 2.5%.
Diageo was created in 1997 through the merger of Guinness and GrandMet and is headquartered in London. The company’s products are sold in about 180 countries, and Diageo employs more than 30,000 people. Diageo produces spirits, wine and beer under the Smirnoff, Johnnie Walker, Guinness, Baileys, Captain Morgan and other brands.