Late Chinese New Year an issue, says Diageo chief

20 September, 2017

Diageo chief executive Ivan Menezes says that despite a late Chinese New Year and highway ban in India, the company is on course to hit its targets ahead of the 2017 annual general meeting.

“We expect the H1 organic net sales growth rate will be impacted by the later timing of Chinese New Year and by the expected impact of the highway ban in India," said Menezes.

“Our business continues to strengthen through improved marketing, innovation, and commercial execution, and we are well set up to deliver in line with our expectations.

“We are up-weighting our investment behind US spirits and scotch, and as a result we expect our organic operating margin expansion will be weighted towards H2.

“We re-affirm our expectation of mid-single digit top line growth and 175bps of organic operating margin improvement over the three years ending 30 June 2019.”

Diageo is the leading premium spirits company, which owns more than 200 brands including Jonnie Walker, Smirnoff, Baileys and Captain Morgan, which are sold in more than 180 countries.

Keywords: diageo, ivan menezes


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