BUSINESS LIVE: Diageo sales dip; Saga profits soar; Pets at Home trims guidance

Diageo missed first-half sales estimates after the world’s largest spirits maker suffered a sharp decline in the key markets of Latin America and the Caribbean.

The maker of Johnnie Walker whisky and Tanquery gin reported a 0.6 per cent fall in organic net sales for the six months ended 31 December, slightly missing analyst estimates for flat organic sales.

Diageo warned in November that sales in Latin America and the Caribbean were set to decline by over 20 per cent amid a build-up of unsold stock in Mexico and Brazil, where drinkers were buying less premium spirits.

Boss Debra Crew said:

‘As previously announced in November 2023, materially weaker performance in LAC, driven by fast-changing consumer sentiment and high inventory levels, significantly impacted total business performance.

‘Having conducted a review of inventory levels and monitored performance in the critical holiday season, we have taken action and have further plans to reduce inventory to more appropriate levels for the current consumer environment in the region by the end of fiscal 24. This is a key priority.’