Diageo Sees Strong Start To Fiscal Year, Says It’s Monitoring Potential DisruptionsSeptember 19, 2019
After posting net sales up 6.1% to £12.9 billion ($16.1b) and an operating profit increase of 9% to £4 billion ($5b) for its full fiscal year ended in June, Diageo said its positive momentum is continuing so far in its new fiscal year, but warned of potential headwinds stemming from global trade disputes.
In a statement ahead of the company’s annual general meeting, Diageo CEO Ivan Menezes noted that the spirits giant expects its organic net sales growth to be toward the mid-point of its 4% to 6% guidance and organic operating profit to grow roughly one percentage point ahead of organic net sales in its current fiscal year ending next June.
However, Menezes added that the company “would not be immune from significant changes to global trade policy and continues to monitor this closely.” In addition to the threat of tariffs on European wine and spirits imports to the U.S., the drinks industry is watching how the ongoing Brexit drama will play out, with the U.K. scheduled to leave the E.U. on October 31.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
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