Drinks

Diageo 'Making Good Start To Year', Says Chief Executive

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The chief executive of spirits giant Diageo, Ivan Menezes, has said that the company has made a "good start" to its 2023 fiscal year, with organic net sales growth seen across all regions.

Menezes was commenting ahead of the group's annual general meeting, and added that the positive start was being driven by the Diageo's "advantaged portfolio" and "continued investment in brand building".

He also hailed the group's agile supply chain and culture.

According to Menezes, Diageo is well-positioned to deliver its medium-term guidance for the period from fiscal 2023 to fiscal 2025 of organic net sales growth in the range of 5% to 7% and organic operating profit growth in the range of 6% to 7%.

'Challenging' Operating Environment

"We expect the operating environment to remain challenging with ongoing volatility due to geopolitical uncertainty, a weakening of consumer spending power, inflationary pressures and disruption related to COVID-19," he commented.

"However, I am confident in the resilience of our business and our ability to navigate these headwinds while executing our strategic priorities, including our ambitious 2030 sustainability plan."

In July, Diageo reported full-year sales for its fiscal 2022 period rose by 21.4%, to £15.5 billion (€18.56 billion), beating analyst expectations.

The group has also signalled its intent to wind-down its Russia operations by year-end.

Diageo's core drinks brands include Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

© 2022 European Supermarket Magazine – your source for the latest Drinks news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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