Diageo has reported a fall in net sales over the past six months due to a plunge in demand in Latin America and Caribbean, but in the UK there is soaring demand for Guinness boosting British sales.
Diageo who make Guinness and Gordon’s gin saw a fall in shares on Tuesday morning as consumers are buying cheaper drinks.
In the six months to 31 December the FTSE 100 firm recorded operating profit of £2.6 billion, which is down 11.1% against the same period the year before.
Diageo chief executive Debra Crew said, “Looking ahead to the second half of fiscal 2024, despite continued global economic volatility, we expect to deliver improvement in organic net sales and organic operating profit growth at the group level, compared to the first half.
“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.”