From Investing.com: 2024-07-29 02:11:00

Diageo is expected to report its first sales decline since 2020, with analysts predicting a 0.2% drop in net sales to £17.1 billion as the company faces challenges in North America and Latin America. Some fear the outcome could be worse than forecasted, impacting investor confidence in the spirits giant.

The decline in sales is due to ongoing issues in the U.S. market and Latin America, with Diageo struggling to maintain its market share amidst changing consumer preferences. Despite efforts to boost sales, the company is facing tough competition and a slowdown in demand for luxury spirits.

Investors are concerned about Diageo’s performance following a post-pandemic sales boom, with demand for expensive spirits declining. Sales losses are also being driven by a stagnant market in the U.S., where Diageo’s traditional strengths in whiskey and gin are losing popularity to other brands.

In Mexico, Diageo is facing a 10-20% sales decline due to unsold stock and reduced demand for international spirits. The company’s brands are being heavily discounted to clear inventory, as Mexican consumers shift their preference towards local drinks like mezcal over pricier imported spirits.



Read more at Investing.com: Diageo set for first post-COVID annual sales decline By Reuters