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Diameo beverage manufacturer has removed its long sales growth guidance, blaming the uncertainty for US tariffs and poor demand in key markets, as the company is under pressure from investors to improve performance.
Don Julio Tequila, Guinness and Johnnie Walker Whisky manufacturer said on Tuesday that sales in six months by the end of December dropped 0.6 percent to $ 10.9BN.
The decision to reject its 5th to 7 percent target for the increase in medium -term organic sales came as the company faces uncertainty about the impact of a global trade war.
US President Donald Trump on Monday withdrew from the imposition of 25 percent tariffs on US imports from Mexico and Canada, giving countries a 30-day return. Diageo is the group of the most exposed spirits if the US goes ahead with taxes.
The chief executive of Diageo Debra Crew said the company had planned for possible tariffs, but that the tax perspective “adds further complexity to our ability to provide up -to -date guidance forward given that this is a new and dynamic situation”.
The shares fell 2.9 percent in the early London trade on Tuesday.
Diameo was already under pressure from investors, confident in managing the company that faded that when the crew issued a warning of a friend in late 2023 after a fall of sales in Latin America.
The pricing of its action has fallen about one fifth in the last 12 months after investors have tired of the company’s poor performance.
The prospects of long -term growth of the industry are also faced with skepticism. The demand for souls in the US category market has destroyed, causing concern that a tendency for moderation among consumers aware of the health and spread of weight loss and cannabis will require demand.
The volume of drinks it sold during the second half of 2024 fell 0.2 percent while consumers shortened.
Despite these concerns, Crew said the company remained “sure of the favorable bases of the long -term industry and most importantly in our ability to overcome the market”.
