Home Business News Diageo warns of profit loss over bars closing due to coronavirus

Diageo warns of profit loss over bars closing due to coronavirus

by LLB Reporter
26th Feb 20 12:39 pm

Drinks giant Diageo has warned their profits will fall during 2020 as coronavirus outbreak in China has forced bars and restaurants to close.

The drinks giant said operating profits could be £140m to £220m lower than expected due to the virus causing disruption across Asia.

In a statement the company said, “When we released our interim results on 30 January 2020, we commented on the expectation of an impact from the Coronavirus (COVID-19) outbreak, which we were not able to quantify at the time.

“We are now providing an update on the expected range of the adverse impact in fiscal 2020 of the evolving COVID-19 situation.

“As the situation continues to unfold, our primary concern remains the welfare of our colleagues, their families and their local communities and we will continue to provide all support possible.

“Authorities in China and in other impacted countries have taken strong and decisive action and continue to work tirelessly to contain the spread of the virus.

“Public health measures across impacted countries in Asia Pacific, principally in China, have resulted in: restrictions on public gatherings, the postponement of events and the closure of many hospitality and retail outlets. Several countries and many businesses have also imposed restrictions on travel.”

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