Diageo expects to meet its organic sales targets

SPIRITS maker Diageo Plc said on Thursday (19) it was "not immune" to changes in global trade policies, but based on the current environment expects to meet its full-year organic sales targets.

The Johnnie Walker whisky and Tanqueray gin maker said it continues to expect organic net sales growth to be towards the mid-point of a four per cent to six per cent range and organic operating profit to grow roughly one percentage point ahead of organic net sales.

The company also said it expects first-half organic operating profit growth to be in-line with or slightly behind organic net sales growth, due to stronger prior year comparables.

"We would not be immune from significant changes to global trade policy and continue to monitor this closely," Chief Executive Ivan Menezes said in a statement.

The forecast comes ahead of the drinks maker's annual general meeting today in London.

It also comes just weeks ahead of UK's departure from the European Union, which in the chance of a no-deal exit would bring trade tariffs and customs checks with the continent for the first time in decades.

London-based Diageo said the forecasts were consistent with its targets for the medium term or next three years, which calls for organic net sales growth in the mid-single-digit range and profit ahead of net sales by five per cent to seven per cent.

Shares of the company were down 0.8 per cent in early trading on Thursday.

(Reuters)