18th Oct 2005 14:00
Diageo PLC18 October 2005 18 October 2005 Diageo AGM Statement: Guidance for the Current Year Unchanged. Diageo will hold its AGM at 2.30pm today at The Queen Elizabeth ll ConferenceCentre, Broad Sanctuary, Westminster, London SW1. At the meeting Paul Walsh,Chief Executive of Diageo, will make the following comments on the currentfinancial year: 'At our results presentation in September we reported top and bottom lineorganic growth for the fifth consecutive year. On that occasion I said that weexpected to continue that trend and that top and bottom line growth in fiscal2006 would be similar to that delivered in the year ended June 2005 when weachieved 4% organic net sales growth and 7% organic operating profit growth.Trading in the first quarter of the new financial year supports this guidance. 'In North America, our business continues to gain share in the growing spiritscategory. In Europe, as we anticipated the trading environment continues to bedifficult with volume down on the prior period and the decline in the ready todrink segment continuing to adversely impact net sales growth. In theInternational region, volume growth remains strong and the markets, which weidentified as underperformers last year, Korea, Taiwan and Nigeria, are nowmaking progress in line with our expectations. 'The current oil price has led to higher costs for all consumer goods companies.Diageo is not immune to this but our cost structure does reduce our exposure andtherefore we currently expect to contain these cost pressures within our overallguidance. 'In addition if the recent strengthening of the US dollar were to be maintainedthe negative impact in fiscal 2006 of the year on year movement in exchangerates is estimated to be £45 million. This is a slight improvement from the £50million adverse movement we estimated in September but if current rates weremaintained we would expect a more substantial improvement in fiscal 07. 'Diageo is the world's leading premium drinks company and we are well positionedto deliver our goal to consistently achieve our growth objectives.' - ENDS - Contacts: Investor Relations: Catherine James +44 (0)207 927 5272 [email protected] Media Relations: Isabelle Thomas +44(0)207 927 5967 [email protected] Notes to Editor: Diageo is the world's leading premium drinks business. With its global vision,and local marketing focus, Diageo brings to consumers an outstanding collectionof beverage alcohol brands across the spirits, wine and beer categoriesincluding Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, CaptainMorgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines. Diageotrades in some 180 countries around the world and is listed on both the New YorkStock Exchange (DEO) and the London Stock Exchange (DGE). For more informationabout Diageo, its people, brands and performance, visit us at www.diageo.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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