Home Business News Diageo warns of slower sales growth

Diageo warns of slower sales growth

by LLB Editor
30th Jan 20 9:32 am

Drinks giant Diageo has reported a rise in half-year profits, boosted by a strong performance in China.

However, it expects sales to grow more slowly because of “uncertainty in the global trade environment”.

The company – whose brands include Smirnoff, Guinness, Johnnie Walker, Tanqueray and Gordon’s gin – reported that in the six months to 31 December, operating profit increased 0.5% to £2.44bn.

In Greater China, which includes Taiwan, net sales increased 24%, with double-digit growth in both Chinese white spirits and Scotch.

Chief executive Ivan Menezes described the interim figures as “another good, consistent set of results”, but warned that they had been delivered “in the face of increased levels of volatility in India, Latin America and Caribbean and travel retail”.

“For the full year, we therefore expect organic net sales growth to be towards the lower end of our 4-6% mid-term guidance range,” he added.

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