Diageo predicts 2020 growth but ‘not immune’ to global changes

Drinks groups says it off to a good start for fiscal year

Diageo chief executive Ivan Menezes said the drinks group expected organic operating profit to grow one percentage point ahead of organic net sales in 2020. Photograph: Chris Ratcliffe/Bloomberg

Diageo chief executive Ivan Menezes said the drinks group expected organic operating profit to grow one percentage point ahead of organic net sales in 2020. Photograph: Chris Ratcliffe/Bloomberg

 

Drinks group Diageo said it had got its fiscal year off to a good start , predicting sales growth of up to 4 per cent for 2020, but warned it was “not immune” to changes in global trade policies.

Chief executive Ivan Menezes said the drinks group expected organic operating profit to grow one percentage point ahead of organic net sales.

“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. 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,” he said.

“Due to a strong prior year comparable, for the first half we expect organic operating profit growth to be in line with 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.”