Diageo reports strong start to the year

The drinks company said its North American business is performing strongly based on resilient consumer demand, robust off-trade activity and good momentum in the on-trade business. Africa, Asia Pacific and Latin America are performing well though volatility is likely to continue, Diageo said. Sales at airports and other travel hubs remain disrupted.

The maker of Johnnie Walker whisky and Guinness stout said it was managing rising costs resulting partly from supply chain constraints. In a statement before its annual shareholder meeting the company said its organic operating margin would benefit from further rising sales and drinkers buying more upmarket drinks.

Ivan Menezes, Diageo's chief executive, said: "We have made a strong start to fiscal 22, with organic net sales momentum across all regions. I am pleased with how our business is performing and I remain confident in our ability to deliver long-term sustainable growth and shareholder value."