Diageo profits slump amid a ‘challenging year’ – London Business News | Londonlovesbusiness.com

Diageo who makes Guinness said that due to a “challenging year” sales profits slumped amid a weak performance in Latin America.

Sales have fallen for the first time in four years due to weaker demand for scotch and rum, Diageo revealed.

In the year to 30 June net sales for the Gordon’s gin and Bailey maker fell by 1.4% to £15.8 billion, this was due to falling sales volumes and currency rates.

Organic operating profits dropped by 4.8% to £4.7 billion.

Debra Crew, chief executive, said, “While fiscal 2024 was a challenging year for both our industry and Diageo with continued macroeconomic and geopolitical volatility, we focused on taking the actions needed to ensure Diageo is well-positioned for growth as the consumer environment improves.

“With iconic brands that have been enjoyed for decades, Diageo takes a long-term view, and will continue to invest in our brands, people and diversified footprint to deliver sustainable, long-term growth and generate shareholder value.”