Drinks giant Diageo has said that it expects organic net sales for its 2020 financial year to be 'toward the midpoint' of the 4% to 6% range.
The group made the assessment in a trading statement ahead of its AGM, which takes place today (19 September).
It added that it is targeting organic operating profit growth 'roughly one percentage point' ahead of organic net sales, which it said was 'consistent with what we are targeting over the medium term'.
'Started Well'
“Fiscal 20 has started well as we continue to build on the momentum and consistent progress we are making in the execution of our strategy," commented Ivan Menezes, Diageo chief executive.
"Our focus remains on delivering quality sustainable growth. This is supported by a culture of everyday efficiency that enables us to invest smartly in marketing and growth initiatives while expanding margins."
Menezes noted that due to a strong prior-year comparable, first half organic operating profit growth is expected to be in line or "slightly behind" organic net sales growth.
"However, we would not be immune from significant changes to global trade policy and continue to monitor this closely," he said.
© 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.
