Diageo Slumps After Profit Warning on Latin America Slowdown
- CEO Debra Crew warns of lower profit and sales growth
- Downgrades medium-term profit growth to be in line with sales
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Diageo Plc shares slumped after the UK distiller warned that a growth slowdown in its Latin America and Caribbean division will hit profits as customers there buy less and trade down to cheaper brands.
The maker of Johnnie Walker whisky and Smirnoff vodka said Friday that it now expects to see lower growth and profit in the second half of its fiscal year compared with last year, due to a materially weaker outlook in the region, which accounts for nearly 11% of Diageo’s net sales.