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Companies start counting potential costs of Trump's tariffs

Diageo, the world's largest spirits company, has withdrawn its medium-term sales forecast due to a significant slowdown in Latin America and the Caribbean, which was more severe than anticipated. The company, known for brands like Johnnie Walker whisky and Tanqueray gin, reported a 1.4% drop in organic net sales for the first half of its fiscal year, with a particularly sharp decline in the second quarter. This region, accounting for about 11% of Diageo's sales, experienced a 23% drop in sales due to reduced consumer spending and inventory destocking. Despite this, Diageo's CEO Debra Crew expressed confidence in the company's long-term growth prospects, supported by its diverse portfolio and strong market positions in other regions. The company also announced a share buyback program of up to $1 billion, signaling its commitment to returning value to shareholders.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/retail-consumer/diageo-withdraws-medium-term-sales-forecast-2025-02-04/ ]