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Diageo plc (NYSE: DEO) expects improvement in organic net sales growth in H2FY24, driven by North America

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Highlights

Diageo plc (NYSE: DEO), a UK-headquartered global company, specializes in manufacturing and distributing beverages. With a diverse portfolio of around 200 brands spanning spirits and beer, it operates in 180 countries across segments including Latin America, North America, Europe, the Caribbean, Asia Pacific, Africa, and Supply Chain and Procurement (SC&P).

In the first half of fiscal year 2024, DEO posted net sales of USD 11.0 billion, marking a 1.4% decline. This decrease stemmed mainly from a USD 167 million unfavorable foreign exchange impact and a USD 67 million organic net sales drop (0.6%). Operating profit fell by 11.1% to USD 3.3 billion, with a contraction of 329 basis points in the operating profit margin, influenced by lower organic operating margins and the negative impact of exceptional operating items.

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