Diageo: guidance unchanged despite 'difficult' environment

(CercleFinance.com) - Shares of the British spirits group Diageo were up in London on Thursday, after the group confirmed its outlook, despite an environment described as "difficult".


Shares in the owner of Gordon's gin, Captain Morgan rum and Smirnoff vodka, amongst others, rose over 4%, making it one of the biggest risers on the FTSE 100 index.

In Paris, its rival Pernod-Ricard took advantage of the situation to recover around 4.7% in its wake.

When it published its annual results at the end of July, Diageo had provided relatively vague forecasts, suggesting that the conditions observed towards the end of the last financial year would continue into the new financial year 2024/2025.

In a statement issued ahead of today's Annual General Meeting, CEO Debra Crew reiterated these comments.

The global environment remains challenging, both for the sector as a whole and for Diageo itself, she said.

While pointing to "cautious" consumer behaviour, she also emphasized that the company still aims to strengthen the resilience of its business through operational excellence, productivity measures and strategic investment, with the aim of gaining market share.

I am confident that the fundamentals of the alcoholic beverages market, and spirits in particular, remain strong, she continued.

In her view, the measures recently undertaken by Diageo will ensure that the group is well positioned to outperform the market once consumer sentiment improves.


Copyright (c) 2024 CercleFinance.com. All rights reserved.