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Diageo Sees Strong Start To New Fiscal Year

September 30, 2021

In a trading update this morning, Diageo said it’s seeing ongoing net sales momentum across all regions so far in its new fiscal year, which ends next June. “Our North American business is performing strongly, despite some supply chain constraints, reflecting resilient consumer demand,” said company CEO Ivan Menezes. “We continue to invest ahead in marketing and innovation to underpin long-term growth.”

Across its global footprint, Diageo said its European business is recovering ahead of expectations, while Africa, Asia Pacific, and Latin America and the Caribbean are performing well, and travel retail continues to be disrupted by the pandemic. Looking ahead, Menezes said, “We expect organic operating margin to benefit from a further recovery in sales volumes, positive channel mix and premiumization trends,” as the fiscal year moves along. In its previous fiscal year, through this past June, Diageo posted sales up 16% on an organic basis to £12.7 billion ($17.7b), with operating profit up 17.7% to £3.7 billion ($5.2b).—Daniel Marsteller

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