Diageo Confirms Guidance for 2007 Organic Operating Profit Growth of at Least 7%
Walsh: "In North America, in this first quarter Diageo has again gained share in a beverage alcohol market which continues to benefit from positive demographics and the consumer’s preference for premium brands."
18/10/06 Diageo will hold its AGM at 2.30pm today at The Queen Elizabeth II Conference Centre, Broad Sanctuary, Westminster, London SW1. At the meeting Paul Walsh, Chief Executive of Diageo, will make the following comments on the current financial year:
‘At our results presentation in August I said we expected organic net sales growth in the 2007 fiscal year to be in line with the 6% we achieved in the year ended June 2006 and that we planned to deliver organic operating profit growth of at least 7% for the fiscal year ending June 2007.
‘Trading in the first quarter supports that guidance and therefore we reiterate that fiscal 07 guidance this afternoon.
‘In North America, in this first quarter Diageo has again gained share in a beverage alcohol market which continues to benefit from positive demographics and the consumer’s preference for premium brands.
‘In Europe we have delivered a stronger performance in continental Europe and double digit top line growth in Russia but this has been offset by weakness in the Spanish premium drinks market and slower sales of Guinness in Ireland and Great Britain.
‘In International we have delivered further strong top line growth in the first quarter. While our Middle East and global travel business has faced some specific challenges in the quarter this was offset by continued strong growth in Latin America.
‘We ended the 2006 fiscal year with well-positioned brands and a more efficient and effective organisation and we will build on those achievements in the current fiscal year. We believe that this is the platform from which Diageo can consistently deliver our top and bottom line goals. ‘
