Shares in Diageo PLC rose on Thursday after the UK drinks manufacturer said expectations are unchanged despite ‘challenging’ markets.

In a brief trading statement ahead of Thursday’s annual general meeting, the owner of the Johnnie Walker whisky and Guinness stout brands said the global economic environment ‘remains challenging for both our industry and Diageo’.

But Chief Executive Debra Crew reassured that ‘our expectations are unchanged’ from July when the firm reported annual results.

AJ Bell’s Russ Mould said while Diageo doesn’t exactly sound ‘cheery’, the fact trading remains in line with expectations is ‘prompting some relief’.

Shares in Diageo rose 3.9% to 2,595.58 pence each in London on Thursday. They are down 15% in the last 12 months.

CEO Crew said drinks consumers continue to be ‘cautious in this environment’, but said Diageo was focused on ‘strengthening the resilience of our business’.

This would be achieved through productivity and strategic investments to win ‘quality market share’.

Crew reported good progress on strategic initiatives, including US route-to-market enhancements, and in Nigeria where restructuring is ‘progressing well’.

The Diageo boss believes that the fundamentals for global ’total beverage alchohol’, and particularly the spirits industry, remain strong.

She is ‘confident that when the consumer environment improves, growth will return and the actions we are taking will position us well to outperform the market.’

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