Sales drop: Diageo boss Debra Crew
Diageo boss Debra Crew admitted it is difficult to predict when the company might clear up the problems in Latin America that led to a surprise earnings warning and sent its shares tumbling 16 percent.
The world’s top spirits maker said last week that sales would fall more than 20 percent in Latin America and the Caribbean, which accounts for about 11 percent of the business.
The announcement spooked investors because Diageo failed to flag any problems in a September trading update, leaving some wondering how the company was blind to such a big problem.
The stock drop was the company’s biggest one-day drop.
Diageo said it had limited visibility into inventory levels among retailers and wholesalers in the region, but the company is scheduled for strong retail activity over the Christmas period.
Share fell 1.8 per cent, or 53 pence, to 2,845.5 pence.