The chief executive of drinks giant Diageo, Ivan Menezes, has said that the business expects to post operating profit growth of between 5% and 7% in full year 2018/19.
At an investor conference in New York, Menezes also said that he anticipates organic net sales growth for the full year "in the mid single digit range".
Diageo announces its full-year results at the end of July.
'Consistent Growth'
“Diageo has delivered strong performance over the past two years with consistent mid-single digit organic top line growth; upweighted investment in our brands; as well as organic operating margin expansion and strong cash flows," Menezes said. "During the same period we have generated attractive total shareholder returns and, from fiscal 17 to fiscal 19 H1, have returned £7 billion to shareholders via dividends and share buy-backs.
"As we approach the end of our financial year, we are reiterating our current guidance of delivering organic net sales growth towards the upper end of our mid-single digit range and 175bps organic operating margin improvement over the three years ending 30 June 2019," he added.
At the investor conference, Diageo presented on a number of different topics, including the utilisation of data-led insight in US Spirits, the growth of the scotch category in international whisky, the restructuring of its business in India, and how the Guinness brand is being positioned to capture growth.
It also explored ways in which it is evolving its marketing model to deliver 'creativity and executional excellence underpinned by increasingly robust consumer data and analytics'.
Strong Fundamentals
"We operate in an attractive industry supported by strong consumer fundamentals. Our strategy remains focussed on delivering sustainable, consistent growth," said Menezes.
"A culture of everyday efficiency has been embedded in the business and we are constantly challenging ourselves for more," he added. "Our ongoing focus on efficiency enables us to continue to increase investment in our brands. It will also support other growth initiatives and underpin organic operating margin improvement, creating a self-sustaining platform for growth."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
