Diageo sticks by guidance despite cost pressures

The new boss of Guinness maker Diageo has said that cost pressures and the economic challenges are persisting, but stuck by the company’s guidance for the year.

In one of her first public statements for the company since her predecessor Sir Ivan Menezes died in June, Debra Crew said that the company is “well-positioned” to deliver 5-7% organic net sales growth between the 2023 and 2025 financial years.

She said the company was resilient and can navigate the headwinds caused by the economy.

“As I take the helm as chief executive of Diageo, I am excited to lead our teams around the world and by the many growth opportunities we see in front of us,” Ms Crew said.

“Our expectations for the 2024 fiscal year are unchanged from when we reported our 2023 preliminary results on August 1.”

She added: “While we expect operating environment challenges to persist, with ongoing cost pressure and geopolitical and macroeconomic uncertainty, we will move with speed and agility and continue to invest in marketing and innovation.

“I am confident in the resilience of our business and our ability to navigate these headwinds while executing our strategic priorities.”

Ms Crew had to step up into the chief executive position early after her predecessor Sir Ivan died following a short illness.

The 63-year-old had led the drinks maker, which owns Johnnie Walker and Smirnoff, for around a decade.

He died just a few weeks before his planned retirement.