Diageo has said it has taken a “small step in the right direction” after the drinks giant reported a Q1 net sales increase of 1.2% to $4.9bn.

The company reported what it called positive organic growth partly offset by unfavourable foreign exchange and the impact of disposals.

Diageo owns brands that include Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoff and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Regionally Latin America and Caribbean (LAC) and Asia Pacific delivered mid-single-digit growth. India and Europe, Middle East and Africa (EMEA) were up low-single-digit. In North America, organic net sales declined

Sir Dave Lewis, chief executive officer at Diageo commented: “Overall, Q1 was in line with expectations, and we have reiterated our full year guidance.

“We were pleased with the growth across LAC, EMEA, APAC and India. In North America, we continue to focus on making our offer more competitive, and whilst this remains our biggest challenge, clear actions are underway.

“Whilst the market remains challenging, and volatility continues given the geopolitical uncertainty and impact of the ongoing conflict in the Middle East on energy, supply and distribution, results in the first quarter represent a small step in the right direction.

“Growth in the quarter whilst implementing significant change is testament to the focus and commitment of Diageo colleagues, and I would like to register my sincere thanks for their support.”