Diageo reported earnings of 95.5 pence per share before exceptional items for the full year ended June 30, down from 103.1p a year before and below analysts' forecasts around 97.7p.
Net sales fell 9 percent to 10.3 billion pounds ($17.4 billion), while the average forecast was 10.5 billion, according to Thomson Reuters data.
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Diageo did not provide a forecast for the current year, but Chief Financial Officer Dierdre Mahlan told reporters trading in North America and western Europe should continue in a similar trend as recently, though emerging markets should improve, probably in the back-half of the year.
"While we expect those to improve, the top line performance will be dependent, to some degree, on how quickly those economies come back," Mahlan said.
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Sales volume, which measures the amount of drinks sold, fell 5 percent in Diageo's Asia Pacific and Africa, eastern Europe and Turkey divisions and 1 percent in North America and Latin America. Western Europe was flat.
Weak spots include China and southeast Asia, where volume fell 20 and 25 percent respectively, and Venezuela, where a currency devaluation and inflation cut Scotch sales 47 percent.