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Diageo PLC on Tuesday said half-year revenue and profit were hurt by a decline in sales in Latin America and the Caribbean. The London-based brewer and distiller sells more than 200 drinks brands, including Guinness stout, Captain Morgan rum, Johnnie Walker whisky, Tanqueray gin, Smirnoff vodka and Baileys liqueur. Sales in the six months ended December 31 fell 2.8% to $15.18 billion from $15.61 billion a year earlier. This was driven by a decline in organic net sales in Latin America & Caribbean, where they contracted by $310 million or 23% on a year before. Diageo said this was the result of strong year-earlier comparison, as well as ‘lower consumption and consumer downtrading due to macroeconomic pressures in the region’. Pretax profit dropped 15% to $3.08 billion from $3.61 billion the year before. Despite the worsened results, Diageo raised its interim dividend by 5.0% to 40.50 US cents from 38.57 cents. Looking ahead, Diageo said it expects organic net sales growth rate in the second half to ‘gradually improve’ compared to the growth rate in the first half. ‘In Europe, Asia Pacific and Africa, we expect continued growth in the second half, recognizing that macroeconomic volatility and consumer uncertainty will likely persist,’ it said. Chief Executive Debra Crew commented: ‘While the macro environment will continue to present challenges, I am confident that we remain well-positioned and resilient for the long term. We are diversified by category, price point and region and will continue to invest behind our iconic brands to maintain our position as an industry leader in total beverage alcohol, an attractive sector with a long runway for growth.’ Shares in Diageo were down 3.3% to 2,748.38 pence each in London on Tuesday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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