Diageo said on Thursday some of its strategic initiatives were starting to pay off as shares rose in early trade.
Shares experienced a 3% lift as the world’s largest spirits maker announced it was sticking to its outlook in challenging environment, prompted by the success of its strategic initiatives.
The company said it was making progress on its business plans, including in the US.
Late last year, excess inventory in Latin America caused problems for the company.
The Guinness maker said in a statement ahead of its annual general meeting that it is now trying to improve sales and distribution channels.
In Nigeria, the maker of Johnnie Walker whiskey and Tanqueray gin is aiming to complete a deal to restructure its business model.
In a statement, the chief executive of Diageo Debra Crew said, “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.”
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.
Analysts at JP Morgan said in a note, ‘While Diageo’s expectation are unchanged from late July, the comments that the global industry remains challenging are unhelpful for spirits peers.’
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