Shares in UK drinks giant Diageo plunged Friday after the maker of Guinness stout and Captain Morgan rum warned of a weak sales outlook, citing slowdowns in Latin America and the Caribbean.
The multinational’s share price slumped more than 14 per cent to £27.82 in late morning trading on London’s top-tier FTSE 100 index, which was down 1.3 per cent overall.
The company forecast total sales growth in the six months to the end of December to be slower than the previous six months as Diageo products lose out to cheaper brands amid high inflation.
“This is due to a materially weaker performance outlook in Latin America and Caribbean,” Diageo said in the statement.
In that key region alone, net sales are expected to tumble more than 20 percent in its first half, compared with the same period a year earlier.
Diageo added that it has experienced “lower consumption” in the area owing to regional “macroeconomic pressures”.
Latin America and the Caribbean accounts for almost 11 per cent of total group sales.
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