Diageo chief executive Ivan Menezes has said that the Guinness manufacturer's outlook for the first half of its 2021 fiscal year has improved due to "a good start" to the year.
In a statement published on Diageo's website, Menezes said, "We have made a good start to fiscal 21, with sequential improvement in our performance across all regions, driven by strong execution, robust demand in the off-trade channel and the gradual reopening of the on-trade channel in most markets. The pace of recovery from the COVID-19 pandemic and easing of government restrictions varies by market...Our outlook for the first half of fiscal 21 has improved since the year-end, reflecting the good start to the year, particularly for our US business. We continue to expect sequential improvement in organic net sales and operating profit compared to the second half of fiscal 20. Compared to the first half of fiscal 20, we still expect lower organic net sales and margin dilution."
Menezes added, "I am pleased with the resilient performance of our business in the current challenging operating environment and encouraged by our progress. While the pace of recovery is uncertain, I am confident in our strategy, the long-term fundamentals of our business and Diageo's ability to emerge stronger."
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