Diageo reports strong start for the year

By James Ridler contact

- Last updated on GMT

Ivan Menezes announced a 'strong start' for Diageo this year
Ivan Menezes announced a 'strong start' for Diageo this year

Related tags: Profit, Marketing, Revenue

A strong start for the year at alcoholic drinks giant Diageo was fuelled by improved marketing, innovation and commercial execution, claimed ceo Ivan Menezes.

The comments came ahead of the company’s annual general meeting, due to be held this month.

Building off the momentum created last year, Menezes said that the company’s key drivers of improved top line growth were its fiscal 2017 priorities – boosting sales of Scotch and US spirits while growing sales in India.

“We have made a strong start to our productivity work and are moving at pace,” ​added Menezes.

‘Moving at a pace’

“As we no longer take productivity related costs as an exceptional item, in the first half these costs will impact our organic operating profit margin.”

Diageo’s productivity related costs would decline in the second half of the financial year and would be offset by higher savings and reinvestment in those gains.

Menezes continued: “Our top line momentum and progress in implementing productivity changes, gives us continued confidence in achieving our objective of mid-single digit top line growth.

“Over three years ending fiscal 2019 ​[Diageo will deliver] 100 basis points of organic operating margin improvement.”

 

Diageo fiscal 2017 priorities

  • Boosting sales of Scotch
  • Boosting sales of US spirits
  • Growing sales in India

Related topics: Drinks

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