Management at Diageo (DGE) expects the later timing of the Chinese New Year and the Indian government’s ban on the sale of alcohol near highways to impact organic net sales growth during the first half of its financial year. Shares fell on the news, probably because organic net sales in greater China improved by a quarter in the year to June 2017, making the region Diageo's fastest growing in terms of turnover. The Indian business generated 2 per cent organic net sales growth over the same period, but was dubbed a “focus area” by chief executive Ivan Menezes.
US spirits and scotch were Mr Menezes’ two other areas of focus. The alcoholic beverages group is currently spending more on both, and as a result the company expects expansion of its organic operating margin to be weighted towards the second half of the year.
