Diageo has issued a trading update and updated medium term guidance, citing continuing momentum in four of its five regions but a weaker performance outlook in Latin America and the Caribbean.
In Europe and Asia Pacific, the business sees ‘continued momentum, albeit slower than in the second half of fiscal 23.’ Growth continues to be strong in Europe despite geopolitical tensions, according to the update.
Diageo expects to deliver organic net sales growth between 5-7% in he medium term, with operating profit to grow broadly in line.
While operating environment challenges are expected to persist, it will continue to invest in marketing and innovation, with sustainable long-term growth driven by the strength of the portfolio, a diversified footprint, and consumer insights, the company said.
“Our confidence in our medium-term guidance is underpinned by our participation in the attractive segment of International Spirits, which is growing ahead of TBA, sourcing from Beer and Wine; our advantaged portfolio and footprint which enables us to grow ahead of spirits; and the investments we will continue to make to grow share.”
