Diageo: stock bubbly after trading update
(CercleFinance.com) - The Diageo share is up over 5% on Monday morning on the London Stock Exchange after a trading update at the British spirits group's AGM.
In a statement, Diageo said that it had achieved a good start to FY 2020/2021, which began in July.
In particular the group mentions a sequential improvement in its performance in all its areas of activity, thanks to solid demand in off-trade, the consumption at home market and purchases made in supermarkets.
Diageo added that its on-trade business (out-of-home consumption) benefited from the reopening of bars and restaurants after the spring lockdown measures.
As a result, the group continues to anticipate a sequential improvement in organic sales for the current financial year compared with H2 2019/2020.
Compared with H1 2019/2020, however, both organic sales and profit margins are expected to be on a downward trend, it said.
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