Di­a­geo’s sales hit hard by clos­ing of restau­rants, bars

The Star Malaysia - StarBiz - - Foreign News -

LONDON: Di­a­geo Plc’s sales slumped as the pan­demic led to the clo­sure of bars and restau­rants, with ris­ing e-com­merce and su­per­mar­ket pur­chases fail­ing to fill the gap.

Rev­enue fell 8% in the 12 months through June on an or­ganic ba­sis, the London-based com­pany said yes­ter­day. An­a­lysts ex­pected a de­cline of 6.4%.The com­pany recorded a £1.3bil (Us$1.7bil) im­pair­ment due to Covid19 ef­fects.

The re­sults are some­what worse than al­ready low ex­pec­ta­tions, with the com­pany say­ing in Fe­bru­ary that it would see or­ganic net sales cut by £225mil to £325mil (Us$294mil to Us$424mil) for the fi­nan­cial year.

The com­pany’s beer busi­ness, which in­cludes Guin­ness stout, joined ri­vals An­heuser-busch In­bev NV and Heineken NV in re­port­ing a big drop in sales due to lock­downs. A sil­ver lin­ing comes from surg­ing e-com­merce, which dou­bled in the fourth quar­ter, chief ex­ec­u­tive of­fi­cer Ivan Menezes said on Bloomberg TV.

Some of those gains are ex­pected to per­sist be­yond the pan­demic as con­sumer habits change. Like many other con­sumer-goods com­pa­nies, Di­a­geo said it’s un­able to pro­vide spe­cific fi­nan­cial guid­ance, given the con­tin­ued un­cer­tain­ties around the pan­demic and the global econ­omy.

Di­a­geo shares fell as much as 5.3% early yes­ter­day in London. They’ve dropped 14% this year. — Bloomberg

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.