Diageo warning sends shares down 16%
Plummeting sales in Diageo’s Latin American and Caribbean divisions, which account for 11% of its sales, have seen shares take a knock today.
The company, which sells Buchanan’s whiskey and Don Julio tequila in the region, says a tripling of interest rates and a drop in commodity prices have subjected growth in the region to a slowdown and this is impacting on people’s buying habits.
It says that this projected drop in sales in its Latin American and Caribbean units will be around 20%, impacting on the full-year number at the group level.
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