Johnnie Walker Maker Diageo Tanks After Missing Estimates, Latin America Woes Deepen
Portfolio Pulse from Benzinga Neuro
Diageo Plc (NYSE:DEO) shares dropped over 3% after the company reported a decline in organic net sales and missed analyst estimates. The company faces challenges in Latin America with a 23% sales decline and an expected further decrease of 10%-20% in the second half of the year. CEO Debra Crew is determined to address these issues. Past challenges include considering the sale of its beer portfolio and the end of a partnership with Sean 'Diddy' Combs.
January 30, 2024 | 11:07 am
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Diageo's stock price fell after reporting lower organic net sales and missing estimates, with significant challenges in Latin America.
The decline in organic net sales and the miss on analyst estimates are likely to negatively impact investor sentiment in the short term. The additional challenges in Latin America, a key market for Diageo, could lead to further stock price pressure as the company struggles with excess inventory and declining sales.
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