Diageo reports first-half results below expectations

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.

 



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Featured photo : ©Windsor

Picture of Hugues Reydellet
Hugues Reydellet
Hugues Reydellet is a young and passionate journalist whose favorite subjects are economy, culture, gastronomy, but also cars, and sports. With a sharp pen and an insatiable curiosity, Hugues is constantly on the lookout for new hot information to report.

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