Diageo lifts medium-term sales, profits growth targets

Drinks group Diageo lifted medium-term sales growth guidance on Tuesday, driven by market share across its operating regions.

The maker of Johnnie Walker whisky said it now expected organic net sales growth in a range of 5% - 7% and organic operating profit growth in a range of 6% - 9% for fiscal 23 to fiscal 25. This compared with sales growth of 4% - 6% in fiscal 2017-19.

Diageo expects organic net sales growth of at least 16% in the first half of fiscal 2022 and organic operating profit growth to be ahead of sales growth.

It also set a new target to achieve a 50% increase in the total beverage alcohol (TBA) market value share, from 4% in 2020, to 6% by 2030.

"While we expect inflationary pressures to increase, we also expect to benefit from operating leverage, premiumisation, revenue growth management and productivity gains," said chief financial officer Lavanya Chandrashekar.