Diageo CEO Paul Walsh said in February he was confident the group would meet its mid-term goals

Diageo CEO Paul Walsh said in February he was confident the group would meet its mid-term goals

Diageo remains on course to hit its medium-term target of 6% organic sales growth after announcing its Q3 results, according to analysts.

The firm announced in a trading update this morning (May 3) that organic net sales had grown by 6% in the three months to the end of March, with volumes up by 3%. However Diageo made no comment on its medium-term targets in the statement. 

In a note, analysts Investec Securities said the result should “provide further confidence that Diageo is firmly on track to deliver against its medium-term guidance”.

However Investec also cautioned, saying: “The outlook statement reads blandly to us, and any upgrade on the top line may be offset by negative FX.”

Analysts Nomura said that it also believed Diageo would now meet its medium-term target of 6% organic revenue growth.  

On the subject of M&A, the analysts noted that activity had gone a bit quiet. “Having announced a handful of deals in 2011, we detect that M&A opportunities may come slower in 2012,” it said. 

CEO Paul Walsh said in February after its half-year results, the company had provided a “good start” to delivering its medium-term guidance.