By Michael Susin

Diageo said it expects growth to slow in the first half of its fiscal year due to a weaker performance in Latin America and Caribbean, which accounts for nearly 11% of net sales value.

The liquor maker--which owns Johnnie Walker whisky and Tanqueray gin--now expects organic net sales from Latin America and Caribbean to fall by more than 20% on year in the first half of fiscal 2024 ending Dec. 31.

Operating profit growth for six months ending Dec. 31 is also expected to fall from the 3.16 billion pounds ($3.86 billion) reported a year earlier.

For the second half, Diageo it expects to see a gradual improvement in organic net sales and organic operating profit growth.

"Across other regions, we expect to continue to invest additional advertising and promotion ahead of net sales. We expect that there will be continued, albeit moderating, cost inflation, which will be partially offset by pricing actions," Diageo said.

In North America market, the group anticipates a gradual improvement in organic net sales growth for the first half, while maintaining distributor inventory in line with historical levels.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

November 10, 2023 02:56 ET (07:56 GMT)

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