Diageo CEO Ivan Menezes said expectations on overall performance for the year remain unchanged

Diageo CEO Ivan Menezes said expectations on overall performance for the year remain unchanged

Diageo has said it expects the ban of alcohol sales next to highways in India, as well as a later Chinese New Year, to impact its growth in the first half of fiscal-2018.

In trading commentary ahead of its 2017 AGM today, the company warned that the two factors are expected to hit organic net sales growth rates in the six months to the end of December. However, the group's expectations for overall performance in the full year "remain unchanged".

"Our business continues to strengthen through improved marketing, innovation, and commercial execution, and we are well set up to deliver in line with our expectations," said CEO Ivan Menezes. "Underlying momentum and progress in implementing productivity gives us continued confidence in our ability to deliver sustainable growth.

"We re-affirm our expectation of mid-single-digit top-line growth and 175bps of organic operating margin improvement over the three years ending 30 June 2019."

In April, a nation-wide ruling in India outlawed the sale of alcohol at outlets within 500 metres of national and state highways. Local reports last month suggested India's Supreme Court has tempered the terms of the ban.

Diageo performance trends 2013-2017 - results data

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