DIAGEO REITERATES FULL YEAR GUIDANCE.

Diageo reiterated its full year guidance of 9% organic operating profit in a statement released today. The company also said organic net sales have risen 5% in the three month period ending Sept. 30. However, organic net sales growth was negatively impacted by more than 1% due to (1) price increases linked to currency shifts in Venezuela which are excluded from organic sales and (2) a new route-to-market system with increased costs in Korea. Diageo says these changes were reported during the 2007 preliminary results in August and were incorporated in its expectation for 9% operating profit growth.

“At our results presentation in August I said that Diageo's strengths are the quality and diversity of our brands, our routes to market and our global reach. Trading since the beginning of the year has again demonstrated these strengths. The second quarter is a key selling period for us and although we continue to watch for any impact that recent financial market volatility may have on broader trading conditions we are maintaining our guidance for 9% organic operating profit growth for the current fiscal year,” said Paul Walsh.

In all, there has been no material change in the financial position of the group during the three-month period.

To view the release, click here.