Johnnie Walker maker Diageo has reported a 'perfect storm' of challenges leading to a decline in earnings and missed first-half sales estimates for the fiscal year 2024, with shares down 29% since the start of 2022. The company's organic net sales decreased by 0.6%, including a 1.5% decline in North America. The sales slump was led by a 5.0% drop in the Super Premium+ category. Adjusted EBIT fell by 5% organically and 7% in dollar terms, while the adjusted EBIT margin contracted by 167 basis points to 32.0%. Adjusted EPS also decreased by 7.1%, despite a 5% increase in dividends. Diageo's leverage ratio stood at 2.9 times. The sales downturn was particularly pronounced in Latin America and the Caribbean, and the company also faced disruptions in the Red Sea that delayed some spirits shipments.
$DEO (-1.2% pre) Sobering financial results from Diageo shows alcoholic earnings under pressure https://t.co/RsVFTRXpxl
Diageo $DGE / $DEO FY24H1 Q&A 1/ US market "still normalizing, not yet normalized" Not back to MSD as expected 6 months ago Fall: Consumer under pressure, trended more to LSD Nov: "nice improvement" Dec: started weak, got stronger; month +3.3% (NABCA) No change for medium term https://t.co/EnLTze2lmv
Diageo investors seem braced for a beerier future - https://t.co/HrhORmqTxq - @aimeedonnellan https://t.co/FFQUKlfC7a
Red Sea disruption delaying some spirits shipments, Diageo says https://t.co/ereHpfugqe https://t.co/VQHB7o8nAF
Diageo’s spirits sales slump on Latin America and Caribbean slowdown https://t.co/3xW2towQ1n
Diageo profits hit by ‘perfect storm’ in Latin America https://t.co/48Gt20gM94
British distiller Diageo reports a decline in earnings as demand for pricey spirits slumped in Latin America https://t.co/OqiZMkqSVz via @markets
Diageo $DGE $DEO FY24H1 (Jun-Dec) Net sales -0.6% organic (incl. N America -1.5%) Organic sales decline led by Super Premium+ (-5.0%) Lapping PY US restocking Adj. EBIT -5% organic, -7% in $ Adj. EBIT Margin 32.0% (-167 bps organic) Adj. EPS -7.1% in $ Dividend +5% Leverage 2.9x https://t.co/IE3GhyTDoS
Diageo reports falling profit and sales, on weak Latin America, Caribbean units https://t.co/Mgksa9Hbg9
Johnnie Walker maker Diageo misses first-half sales estimates https://t.co/ZpHypazqGA https://t.co/TTKvcZhbc9
British distiller Diageo reports a decline in earnings as demand for pricey spirits slumped in Latin America https://t.co/DewBaEcYN8
"Diageo is in demand as investors rush to get their orders in" (The Times) $DGE shares are down 29% since start of 2022 https://t.co/PN7PITnIaO