Diageo Off To Strong Start In New Fiscal Year

After reporting a 2.8% organic rise in net sales to $13.8 billion for its fiscal year ended in June, Diageo says its fiscal 2017 has started off well, and that it’s confident of achieving mid-single digit top line growth looking ahead.

In a statement issued in advance of the drinks giant’s annual general meeting, Diageo chief executive Ivan Menezes said “the momentum we created last year, strengthening our business through improved marketing, innovation, and commercial execution, has set us up to deliver a stronger performance. Key drivers of improved top line growth are our fiscal 2017 priorities: Scotch, U.S. spirits and India.”

In addition to its target of mid-single digit sales growth, Diageo is aiming for 100 basis points of organic operating margin improvement by fiscal 2019. In its last fiscal, the company’s operating profit rose 1.6% to about $3.7 billion. Part of that effort involves a “productivity program” that may reportedly result in significant job cuts across the global business. —Daniel Marsteller

Tagged : Diageo

GET YOUR FIRST LOOK AT 2025 ESTIMATES AND 2030 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2025 IMPACT DATABANK REPORTS. CLICK HERE.