Sales slump: Diageo boss Debra Crew
Diageo boss Debra Crew admitted it is difficult to predict when the company could clear up the issues in Latin America that led to a surprise profit warning and sent its shares 16 per cent lower.
The world’s top spirits maker said last week that sales were set to fall by more than 20 per cent in Latin America and the Caribbean, which makes up around 11 per cent of business.
The announcement spooked investors because Diageo did not flag any problems in a September trading update, leaving some wondering how the company was blind to such a big problem.
The share slump was the largest ever one-day fall suffered by the company.
Diageo said it had limited visibility into inventory levels among retailers and wholesalers in the region but that the company has robust retail activity scheduled over the holiday period.
Shares fell 1.8 per cent, or 53p, to 2,845.5p.
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