StockMarketWire.com - Alcoholic beverage maker Diageo said it expected organic net sales growth of at least 16% in the first half of fiscal 2022, after making a 'strong' start to the new fiscal year.

The outlook reflected 'resilience' in the off-trade and continued recovery in the on-trade, the company said.

'We expect the strong growth momentum in the first half of fiscal 22 to continue through the remainder of the fiscal year. However, in the second half of fiscal 22 we will be lapping a tougher comparator,' it added.

The company also set out new medium-term guidance, forecasting organic net sales growth in a range of 5% to 7% and organic operating profit growth in a range of 6% to 9% for fiscal 2023 to fiscal 2025.

'While we expect inflationary pressures to increase, we also expect to benefit from operating leverage, premiumisation, revenue growth management and productivity gains,' the company said.

Story provided by StockMarketWire.com