REG - Diageo PLC - Diageo issues trading commentary ahead of AGM 2020

DiageoAnnouncement

28/09/2020 07:00

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RNS Number : 2191A  Diageo PLC  28 September 2020

28 September 2020

Diageo issues trading commentary ahead of AGM 2020

Ivan Menezes, Chief Executive, commented:

"We have made a good start to fiscal 21, with sequential improvement in our
performance across all regions, driven by strong execution, robust demand in
the off-trade channel and the gradual re-opening of the on-trade channel in
most markets. The pace of recovery from the Covid-19 pandemic and easing of
government restrictions varies by market.

Our US business is performing strongly and ahead of our expectations,
reflecting resilient consumer demand and the spirits category continuing to
gain share within the total beverage alcohol market. Increased retailer
confidence is resulting in some re-stocking in the off-trade channel. The
on-trade channel is now open in all states, with some capacity restrictions.

In Europe, off-trade demand remains robust and the on-trade channel has
largely re-opened with the easing of lockdown measures in most countries,
although the risk of additional restrictions remains where infection rates are
worsening. In China, the on-trade channel continues to recover, although
larger banqueting occasions are returning more slowly. While the on-trade has
also begun to re-open in Africa, India and Latin America and the Caribbean, we
expect the pace of recovery in those markets to be more gradual. Travel retail
continues to be severely impacted.

We are continuing to support our customers and we are seeing the positive
impact of the actions we took to help the on-trade recover. As demand
recovers, we are using our consumer insights and marketing effectiveness tools
to accelerate smart investment behind innovation and marketing as well as
behind new opportunities in the at-home occasion and in the e-commerce
channel.

Our outlook for the first half of fiscal 21 has improved since the year-end,
reflecting the good start to the year, particularly for our US business. We
continue to expect sequential improvement in organic net sales and operating
profit compared to the second half of fiscal 20. Compared to the first half of
fiscal 20, we still expect lower organic net sales and margin dilution.

I am pleased with the resilient performance of our business in the current
challenging operating environment and encouraged by our progress. While the
pace of recovery is uncertain, I am confident in our strategy, the long-term
fundamentals of our business and Diageo's ability to emerge stronger."

 

For further information please contact:

 

 Investor relations:
 Vinod Rao                                                                                                                                                       +44 (0) 7834 805 733
 Lucinda Baker                                                                                                                                                   +44 (0) 7974 375 550
 investor.relations@diageo.com (mailto:investor.relations@diageo.com)

 Media relations:
 Dominic Redfearn                                                                                                                                                +44 (0) 7971 977 759
 Jessica Rouleau                                                                                                                                                 +44 (0) 7925 642 561
 press@diageo.com (mailto:press@diageo.com)                                                                                                                      +44 (0) 7803 856 200

 

 

 

About Diageo

Diageo is a global leader in beverage alcohol with an outstanding collection
of brands including Johnnie Walker, Crown Royal, JεB, Buchanan's and Windsor
whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don
Julio, Tanqueray and Guinness.

 

Diageo is a global company whose products are sold in more than 180 countries
around the world. The company is listed on both the London Stock Exchange
(DGE) and the New York Stock Exchange (DEO). For more information about
Diageo, our people, our brands, and performance, visit us at www.diageo.com .
Visit Diageo's global responsible drinking resource, www.DRINKiQ.com , for
information, initiatives and ways to share best practice.

 

Celebrating life, every day, everywhere

 

Cautionary statement concerning forward-looking statements

This document contains 'forward-looking' statements.  These statements can be
identified by the fact that they do not relate only to historical or current
facts.  In particular, forward-looking statements include all statements that
express forecasts, expectations, plans, outlook, objectives and projections
with respect to future matters, including trends in results of operations,
margins, growth rates, overall market trends, the impact of changes in
interest or exchange rates, the availability or cost of financing to Diageo,
anticipated cost savings or synergies, expected investments, the completion of
any strategic transactions or restructuring programmes, anticipated tax rates,
changes in the international tax environment, expected cash payments, outcomes
of litigation or regulatory enquiries, anticipated changes in the value of
assets and liabilities related to pension schemes and general economic
conditions.  By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that
will occur in the future.  There are a number of factors that could cause
actual results and developments to differ materially from those expressed or
implied by these forward-looking statements, including factors that are
outside Diageo's control.  Any forward-looking statements made by or on
behalf of Diageo speak only as of the date they are made.  Diageo does not
undertake to update forward-looking statements to reflect any changes in
Diageo's expectations with regard thereto or any changes in events, conditions
or circumstances on which any such statement is based.

 

An explanation of non-GAAP measures, including organic movements, is set out
on page 62 of Diageo's Annual Report for the year ended 30 June 2020.

 

Diageo plc LEI: 213800ZVIELEA55JMJ32

 

 

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