Diageo Performing in Line With Expectations, Backs Three-Year Guidance
By Ian Walker
Diageo PLC (DGE.LN) said Wednesday that it is well set to perform in line with the board's expectations, and backed its three-year guidance.
The drinks company, which houses Johnnie Walker, Crown Royal, J&B, Buchanan's and Smirnoff among its brands, added that it expects first-half organic net sales growth to be hit by the later timing of Chinese New Year, and by the expected impact of a highway ban in India.
It also said that the board is increasing its investment in U.S. Spirits and Scotch, and as a result expects organic operating margin expansion to be weighted towards the second half of the year.
Diageo has a target of mid-single digit top line growth and 175 basis points of organic operating margin improvement over the three years ending June 30, 2019.
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(END) Dow Jones Newswires
September 20, 2017 02:46 ET (06:46 GMT)