Diageo PLC CEO Ivan Menezes on Sept. 19 said the company continues to expect organic net sales growth for fiscal 2020 near the midpoint of the 4% to 6% range, but he said it is not "immune from significant changes to global trade policy."
The alcoholic beverage manufacturer also anticipates operating profit for the fiscal year ending June 30, 2020, to grow about one percentage point higher than its organic net sales. The guidance for the full year is consistent with the company's target for the medium term.
For the first half of the fiscal year, Diageo expects that organic operating profit growth will be in line with or slightly behind its organic net sales growth.
Diageo has previously said that the introduction of a hard border between the U.K. and the EU in the event of a no-deal Brexit would cost it at least £1.3 million per year. It could also be negatively affected if additional tariffs are placed on goods including whiskey and vodka entering the U.S. from the EU.
