Diageo Fiscal Year Profit Seen to Grow; Buyback Program Reinstated -- Update
--Diageo's organic operating growth anticipated to grow at least
14% in fiscal 2021
--Liquor maker's second phase of buyback program of up to GBP1
--Company's performance recovered well across all regions,
specially in North America
By Sabela Ojea
Diageo PLC said Wednesday that it expects to report organic
operating growth of at least 14% in fiscal 2021, adding that its
share-buyback program has been recommenced.
The world's largest liquor maker--which owns Johnnie Walker
whisky and Tanqueray gin--said that its organic operating growth is
also anticipated to be slightly ahead of net sales growth for the
year ending June 30.
The FTSE 100 listed company added that it continued to deliver a
good recovery across all regions, noting that its performance in
its largest market, North America, remained particularly
In Europe, the company is benefiting from strong execution in
the off-trade channel (retailers such as supermarkets) and the
partial reopening of the on-trade channel (bars, hotels and
restaurants) in several markets, it said, adding that it is seeing
strong recovery levels in most markets of Africa, Asia Pacific and
However, it noted that travel retail is still severely hit by
the coronavirus pandemic.
Regarding its share-buyback program, Diageo said that its 4.5
billion pounds ($6.36 billion) return of capital program will be
completed by June 30, 2024, adding that it had to be extended two
years because of the effects of the coronavirus pandemic.
The second phase of its buyback program of up to GBP1 billion
has just been reinstated, which will be completed by the end of
"I am very pleased with how our business is recovering in fiscal
2021, our strong competitive performance across key markets and our
robust cash generation," Chief Executive Ivan Menezes said.
Write to Sabela Ojea at email@example.com; @sabelaojeaguix
(END) Dow Jones Newswires
May 12, 2021 03:02 ET (07:02 GMT)
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