UPDATE 1-Diageo sales up in the Americas, down in Europe
LONDON Oct 17 (Reuters) - Drinks company Diageo Plc reported a 3 percent rise in quarterly organic net sales on Thursday, as growth in the Americas offset a decline in western Europe.
Diageo said in the first quarter to September 30, organic net sales rose 10.9 percent in Latin America and the Caribbean, 5.1 percent in North America, 1.3 percent in Africa, eastern Europe and Turkey and 0.6 percent in Asia Pacific.
Sales fell 1.1 percent in western Europe, and the maker of Johnnie Walker whisky and Smirnoff vodka said it expects a low single digit net sales decline for the full year in the region.
At current spot rates, the company said foreign exchange would hurt operating profit for the fiscal year ended in June 2014 by 165 million pounds.
On a reported basis, net sales were flat, due to the loss of the Jose Cuervo tequila brand, which Diageo stopped distributing earlier this year.
Sales volume rose just 0.6 percent.