Diageo reiterates full-year guidance

The owner of the Smirnoff and Gordon’s brands saw improved “momentum” in the first four months of the year, leading management to expect “improved” sales growth on the back of stronger volumes and a slight improvement in full-year margins.

Nevertheless, the company reiterated its forecasts for a 2% dip in net sales in North America, as the company moves towards a replenishment system for innovation launches.

That would impact revenue growth and margins in the first half, but a stronger performance was anticipated in the second half, the company said in a statement released ahead of an investor conference in New York due on 11 November.

The presentations were set to concentrate on its North American business – its biggest and most profitable region – and on the ways it would access the mainstream spirits opportunities in emerging markets.

As of 14:16 shares in the FTSE-100 listed spirits maker were 0.62% lower at 1,856p, having fallen from the 1,870p mark immediately following the announcement.