Diageo Targets Return to Growth After Weak Americas Performance Drags Sales

By Andrea Figueras

Diageo reported a decline in net sales, weighed by weak performances in both Latin America and North America, but said it aims to get back to growth once conditions improve.

The U.K. spirits maker, which counts Johnnie Walker, Guinness and Smirnoff among its brands, booked net sales of $20.27 billion for its fiscal year 2024, down 1.4% from the year-earlier period. Analysts had forecast sales of $20.24 billion, according to a poll compiled by Visible Alpha.

For the fiscal year ended June 30, operating profit climbed 8% on year to $6.0 billion, while net profit fell to $3.87 billion from $4.45 billion previously.

Looking ahead, the company said it anticipates consumer environment to remain challenging in its fiscal year 2025. "We are confident that when the consumer environment improves, organic net sales growth will return," it said, noting that it aims to get back into its medium-term guidance range of organic net sales growth between 5% and 7%.

Diageo also expects negative pressure on its organic operating margin to persist into fiscal 2025.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

July 30, 2024 02:52 ET (06:52 GMT)

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