Diageo Shares Tumble After Guidance Cut

By Michael Susin

Diageo shares had their worst one-day fall in more than three years after the liquor maker cut its guidance for both the short and medium term.

Shares at 0822 GMT were down 306 pence, or 9.4%, to 2,940 pence.

The company--which owns Johnnie Walker whisky and Tanqueray gin--said in a unscheduled performance update on Friday that it expects growth to slow in the first half of its fiscal year on the back of a weaker performance in Latin America and Caribbean.

Although the company backed its medium-term sales growth target of between 5% and 7%, Diageo currently expects operating profit to grow broadly in line with organic net sales growth. This compares with previously guided organic operating profit growth of 6% to 9% a year.

The share price's slide dragged the blue-chip FTSE 100 index into negative terrain in early trading.

Write to Michael Susin at [e-mail]

(END) Dow Jones Newswires

November 10, 2023 03:52 ET (08:52 GMT)

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