DEO - Diageo points to strong growth trends reaffirms medium term guidance

Diageo ( NYSE: DEO ) CEO Ivan Menezes made some comments ahead of the company's annual meeting. Of note, he stated that the alcoholic beverage giant has made a good start to fiscal year 2023, with organic net sales growth across all regions.

Menezes said the growth track reflects DEO's advantaged portfolio, continued investment in brand building and agile supply chain and culture.

Looking ahead, Diageo ( DEO ) expects the operating environment to remain challenging with ongoing volatility due to geopolitical uncertainty, a weakening of consumer spending power, inflationary pressures and disruption related to Covid-19. However, Menezes and team said they are confident in the resilience of the DEO business and the ability to navigate the headwinds.

"We remain well-positioned to deliver our medium-term guidance for fiscal 23 to fiscal 25 of organic net sales growth consistently in the range of 5% to 7% and organic operating profit growth sustainably in the range of 6% to 9%."

Shares of DEO fell 1.06% in premarket trading. The stock is down 21.4% on a year-to-date basis.

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