2023-11-10 13:12:26
British drinks giant Diageo (Johnnie Walker, Smirnoff, Guinness, Baileys) plunges on the London Stock Exchange on Friday following warning that its prospects were worse than initially announced for Latin America and the Caribbean.
The stock fell 11.8% to 2,861.00 pence on the London Stock Exchange around 09:00 GMT (10:00 a.m. BST), and is down 22% since the start of the year.
“We maintain good momentum in four of our five regions, but at group level, in the first half of our staggered 2023/2024 financial year, we now expect slower growth than for the” previous half-year, indicates the largest distiller worldwide in a press release on Friday.
He attributes this slowdown to “a notably weakened performance in Latin America and the Caribbean”, where sales, which represent 11% of Diageo’s turnover, “are projected to decline by 20% year-on-year on a comparable basis to first half”, which closes at the end of December.
“Macroeconomic pressures in the region are resulting in lower consumption and consumers opting for cheaper brands,” explains Diageo.
The group also anticipates that “difficulties will persist in the operating environment” both in terms of cost pressures and geopolitical and macroeconomic uncertainties.
The British group emphasizes that in other regions, good results have been recorded. However, he underlines that growth in Europe and Asia-Pacific risks being, in the second half of its staggered financial year, less significant than at the same period last year. In Asia-Pacific, sales are affected by a slower than expected recovery in China.
Diageo still maintained its medium-term forecasts.
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