Diageo PLC Now Sees H1 Organic Net Sales To Decline; Gradual Improvement Expected In H2

(RTTNews) - Alcoholic beverage company Diageo plc. (DGE.L, DEO) Friday said it now expects organic net sales to decline more than 20 percent and organic operating profit growth to decline from last year, mainly due to a weaker performance outlook in Latin America and Caribbean or LAC. The company also updated its medium term guidance.

Looking ahead to the second half of fiscal 24, at the Group level, the company expects a gradual improvement in organic net sales and organic operating profit growth from the first half of fiscal 24.

In its first-half trading update ahead of 2023 Capital Markets Event, the company said it now expects a slower growth in first-half organic net sales than the second half of fiscal 23.

The company previously expected to see a gradual improvement in organic net sales growth in the first half from the second half of fiscal 23.

Diageo said it has momentum continuing in four of its five regions, however, the revision in outlook reflects a materially weaker performance outlook in LAC, which is nearly 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 fiscal 23.

In Europe and Asia Pacific, there would be continued momentum, albeit slower than in the second half of fiscal 23.

LAC is lapping very strong 20 percent organic net sales growth, versus the first half of fiscal 23, the company said.