Diageo plc (DEO) Q2 2020 Earnings Call Transcript

Diageo plc (DEO) Q2 2020 Earnings Call Transcript

We are lapping last year's very strong first half and we have faced volatility in specific markets, and pleased that despite this, our performance is in line with our medium-term guidance of 4% to 6% organic sales growth, demonstrating our increased resilience as a business.. Our margin expansion continues even after three strong years, despite increased COGS inflation in this half.. I continue to expect organic operating profit growth to be roughly 1 point ahead of net sales for the full year.. Our next question comes from Sanjeet Aujla with Credit Suisse.. The guidance implies no acceleration in the second half.. And we're not expecting that situation to necessarily improve in the second half.. So as we look to the second half, we would be quite cautious about the economic situation in India.. And perhaps just a quick follow-up on the growth in China you've seen in the first half of the year.. And the brands and the businesses are in really good shape and growing market share in both cases.. Our next question comes from Laurence Whyatt with Barclays.. In the US, you mentioned that your Scotch business benefited first from some trade loading ahead of the tariff impact..