Ahead of its AGM, which took place on 20 September, drinks giant Diageo said that its organic first-half sales growth was likely to be impacted by events in China and India.
The introduction of a ban on the sale of alcohol along India's motorways and the late timing of the Chinese New Year are likely to impact first-half sales, according to Diageo chief executive Ivan Menezes.
Nonetheless, Menezes said, "[The group's business] continues to strengthen through improved marketing, innovation and commercial execution, and we are well set up to deliver in line with our expectations."
Spirits Investment
Menezes outlined ongoing investment projects in which the drinks firm is involved, including upweighting its "investment behind US Spirits and scotch", which is likely to have a positive effect on operating margins in H2.
"Our expectations on overall performance for the year remain unchanged," he said.
"Underlying momentum and progress in implementing productivity gives us continued confidence in our ability to deliver sustainable growth. We reaffirm our expectation of mid-single-digit top-line growth and 175 bps of organic operating-margin improvement over the three years ending 30 June 2019.”
© 2017 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.
