10th Nov 2015 14:06
LONDON (Alliance News) - Drinks giant Diageo PLC on Tuesday said its new financial year has started well and reiterated its guidance ahead of its investor conference in New York.
The FTSE 100-listed group's chief executive, Ivan Menezes, said momentum in the business has improved since the start of its new financial year on July 1, with stronger volume growth and depletions ahead of shipments.
Trading in the first four months has been in line with its expectations, and Menezes said the company is confident of delivering robust top-line growth, driven by better volumes, and a modest improvement in margins for the 2016 financial year.
Net sales in North America are expected to fall by around 2.0% in the first half due to Diageo's move to replenishment system. This will hit top-line growth and margins in the first half, but Diageo expects to deliver a strong performance in the second half.
Diageo shares were down 0.2% to 1,862.00 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Diageo