Currency translation effects and a weak showing from its emerging markets operation were behind a lacklustre performance from Guinness and Smirnoff vodka maker Diageo (LON:DGE).
The world’s largest spirits company revealed organic net sales were off 1.5%, while volumes fell 3.5% in the three months to September 30.
Worst affected was the Asia-Pacific region, where net sales were down 7.4%.
“Emerging markets' performance remains weak with further currency weakness in a few markets and specific geopolitical situations in some areas,” said chief executive Ivan Menezes.
“However, our brand performance has been strong in many markets including Turkey, East Africa, India and Colombia.
“We expect full year top line growth to improve on last year's performance.
“Our focus on our six performance drivers continues to build our capabilities and deliver the cultural change I want to see across the business. I am confident we are on the road to realise our full potential."
Diageo shares are down almost 15% in the year to date as it has struggled maintain top-line growth.