Diageo shares rise ahead of investor meet as whiskey maker says business plans to pay off
Sept 26 (Reuters) -Diageo DGE.L said on Thursday some of its strategic initiatives were starting to pay off, prompting the world's largest spirits maker to stick to its outlook in a challenging environment and sending shares up 3% in early trade.
The company was making progress on its business plans, including in the United States, where it is trying to improve its sales and distribution channels after excess inventory had caused problems late last year,the company said in a statement ahead of its annual general meeting.
In Nigeria, the maker of Johnnie Walker whiskey and Tanqueray gin is aiming to complete a deal to restructure its business model.
"I am confident that when the consumer environment improves, growth will return and the actions we are taking will position us well to outperform the market," CEO Debra Crew said in a statement.
The company had warned in July that weak consumer confidence and other challenges could persist into 2025 as the group struggled to regain investor confidence after a profit warning in November.
"While Diageo’s expectations are unchanged from late July, the comments that the global industry remains challenging are unhelpful for spirits peers," J.P. Morgan analysts said in a note.
Reporting by Yadarisa Shabong in Bengaluru; Editing by Nivedita Bhattacharjee
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