Diageo reports strong trading and ‘good momentum’ in the on-trade

ivan menezes

Diageo has reported strong growth across all regions but warned of future volatility and has made a strong start to fiscal year 2022, with organic net sales momentum across all regions.

CEO Ivan Menezes (pictured) said, “This reflects excellent execution, as we benefit from resilience in the off-trade and continued recovery in the on-trade. However, we expect near-term volatility to remain, including the potential impact of any future waves of Covid-19,

“We continue to invest ahead in marketing and innovation to underpin long-term growth. Our business in Europe is recovering ahead of our expectations. Off-trade demand has remained robust and there is good momentum in the on-trade.

Our businesses in Africa, Asia Pacific and Latin America and the Caribbean are performing well, although volatility in these markets is likely to persist. Travel retail continues to be disrupted.”

“As previously indicated, we are managing rising inflationary pressures, which are partly due to supply chain constraints.”

“I am pleased with how our business is performing and I remain confident in our ability to deliver long-term sustainable growth and shareholder value. We will continue to do business in the right way, from grain to glass, for all our stakeholders,” he added.

Diageo said its North American business has performed well, although it has suffered some supply chain constraints, which it said reflects resilient consumer demand.

Category: News
Tags: Diageo, On-trade, results, SCOTLAND, UK, volatility