In its past fiscal year (which ended in June), British liquor manufacturer Diageo sold about as much liquor as it did last year. Particularly, increased North American demand helped to keep things level.

Increased demand for whiskey and vodka

Nevertheless, Diageo had to deal with a 3 % turnover slump caused by disadvantageous exchange rates, down to 10.5 billion pounds (12.5 billion euro). Net profit also slumped 6 % to 2.2 billion pounds (2.6 billion euro).

On the other hand, the company stands to benefit from these same exchange rates in the upcoming fiscal year, because a large share of its turnover comes from North America and the weaker pound, in comparison with the dollar, creates an advantageous position for Diageo.

The liquor manufacturer still struggles in emerging markets, despite huge investments in the past, but its North American performance is way better than anticipated, with increased demand for whiskey and vodka in the United States for example.

“This is a good set of results delivering what we set out to achieve this time last year and demonstrating our momentum“, CEO Ivan Menezes said. “This better performance reflects the work we have done to strengthen our big brands through marketing and innovation”