Diageo reports a strong start to its new financial year

The group believes that it is on course to meet its growth targets

Diageo reports a strong start to its new financial year

The Guinness Storehouse gates in the St James's Gate in Dublin | Image: Julien Behal / PA Archive/Press Association Images

Ahead of its AMG later today, Diageo has reported that it has had a positive start to its new financial year, which ends on June 30, 2017.

"As expected, the momentum we created last year, strengthening our business through improved marketing, innovation, and commercial execution, has set us up to deliver a stronger performance," chief executive, Ivan Menezes said.

It expects scotch whisky, US spirits and growth in India to boost its coffers.

"We have made a strong start to our productivity work and are moving at pace. As we no longer take productivity-related costs as an exceptional item, in the first half these costs will impact our organic operating profit margin," Mr Menezes continued.

"Our top-line momentum and progress in implementing productivity changes, gives us continued confidence in achieving our objective of mid-single-digit top-line growth, and over three years ending fiscal 2019 delivering 100 basis points of organic operating margin improvement," the chief executive added.

Guinness sales rose by 4% in Ireland during the 12 months to June 30th - more than one in every three pints sold in Ireland come from the brand. Guinness brands hold a 34.6% market share in 'on-trade' sales in the country.