Diageo Warns of Currency Impact
23 Settembre 2015 - 11:20AM
Dow Jones News
LONDON—U.K.-based drinks group Diageo PLC on Wednesday cautioned
that currency movements will have a bigger impact than previously
expected on its results for the 2016 financial year as higher
prices deter customers in emerging markets.
The maker of Johnnie Walker whisky and Smirnoff vodka said
currency movements would reduced its operating profit by £ 150
million ($230.5 million) in the year ending June 30, 2016 compared
with the 2015 financial year, when it reported an operating profit
of £ 2.8 billion.
That compares with an estimate of a £ 100 million impact issued
in July, when Diageo also forecast that exchange rates would reduce
revenue by £ 370 million.
Shares in Diageo gained 0.3% in early trading despite the
worse-than-expected currency impact.
"Our outlook for this financial year included the possibility
that further currency weakness could impact demand for premium
spirits in the emerging markets," Diageo noted Wednesday, saying it
still expects to finish the year with improved revenues and
margins.
The company said trading has progressed in line with its plan
since the start of the current financial year in July.
"Volume has grown mid-single digit reflecting both improved
volume growth trends and comparison against weakness at the start
of last year, especially in U.S. spirits," it said, adding that
price increases have been "muted."
Diageo forecast "mid-single digit organic top line growth on a
sustained basis" from the 2017 financial year, helped by
improvements in productivity.
Write to Ed Ballard at ed.ballard@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 23, 2015 05:05 ET (09:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Grafico Azioni Diageo (LSE:DGE)
Storico
Da Lug 2024 a Ago 2024
Grafico Azioni Diageo (LSE:DGE)
Storico
Da Ago 2023 a Ago 2024