(RTTNews) – Alcoholic drinks manufacturer Diageo plc. (DGE.L, DEO) On Friday it said it now expects organic net sales to decline by more than 20 percent and organic operating profit growth to decline from last year, mainly due to weaker performance prospects in Latin America and the Caribbean or LAC. The company also updated its mid-term guidance.
Looking ahead to the second half of FY24, the company expects a gradual improvement in organic net sales and organic operating profit growth at group level from the first half of FY24.
In its first half trading update ahead of the 2023 Capital Markets Event, the company said it now expects slower organic net sales growth in the first half than in the second half of FY23.
The company previously expected a gradual improvement in organic net sales growth in the first half versus the second half of FY23.
Diageo said momentum continues in four of the five regions, but the outlook revision reflects significantly weaker performance prospects in LAC, which was almost 11 percent of Diageo’s net sales value last year.
In other regions, in North America, the company sees a gradual improvement in organic net sales growth in the first half, compared to the second half of FY23.
In Europe and Asia-Pacific, momentum is expected to continue, albeit at a slower pace than in the second half of FY23.
LAC is experiencing very strong organic net sales growth of 20 percent, compared to the first half of FY23, the company said.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.