Drinks giant Diageo has reported flat sales for the nine months to 31 March on last year.
The Guinness brewer and spirits and wine producer said net sales declined 7% on last year for the most recent quarter, primarily driven by the stock reductions at its US spirits and wine distributors.
On a reported basis net sales grew by 16% in the nine months ended 31 March and by 11% in the quarter ended 31 March. Growth was mainly driven by the impact of exchange rates movements.
"As we anticipated trading in markets around the world has weakened in the second half of the fiscal year," said Diageo chief executive Paul Walsh.
"In particular there has been a significant decline in the Russian market from the beginning of January and the Global Travel Retail business continues to be adversely affected by the economic conditions.
"However, through our actions, including the reduction in trade stock levels which we orchestrated across many markets in the first half and delivered in our US spirits and wine channel in the third quarter, our focus on marketing efficiency and the implementation of our restructuring programme, we are taking the steps necessary to put ourselves in a position to emerge from this global downturn as an even stronger business."
He added: "Despite this more challenging trading environment we continue to forecast organic operating profit growth for the year ended 30 June 2009 in the range of 4% to 6%. "Continued positive exchange rate impacts and the lower tax rate mean that growth in reported eps will be double digit."