The world leader in spirits has announced disappointing first-half results, marked by a significant drop in sales, particularly in Latin America. The company recorded an organic decline in net sales. Despite this setback, the British company remains optimistic for the second half of the year.
On Tuesday January 30, Diageo announced disappointing results for its fiscal first half, marked by a significant drop in sales. Latin America was particularly hard hit, resulting in an overall performance below forecasts.
In the first half of the fiscal year, the world’s leading spirits company posted net sales down 0.6% organically, underperforming analysts’ expectations for a stable performance. Similarly, operating profit fell organically by 5.4%, exceeding the pessimistic forecasts of experts who were expecting a smaller decline of 4.7%.
Following this announcement, Diageo shares fell by 3.85% on the London Stock Exchange, marking the most significant decline on London’s FTSE index at 09:26 GMT.
Latin America weighs on overall performance
Latin America was the major weak spot, with an alarming 23% drop in first-half sales. This was due to a build-up of unsold inventory in Mexico and Brazil, where demand for high-end spirits has fallen considerably.
To continue reading this article, subscribe or log in to your account
Discover our plans
- Every day, keep up to date with the latest business news from the world of luxury.
- Receive the essential luxury business news by email every week
- Access all our events
- The Luxury Journals and Luxus Magazine in print and digital versions
Subscribe for 1€
Become an active member of the community of luxury leaders.
Read also>LVMH AND DIAGEO REVIEW THEIR COLLABORATION
Featured photo : ©Windsor
