Diageo expected to reveal mass losses in new report

Sunday, January 24
Ciarán Mather

Diageo, the parent company of Smirnoff and Guinness, is expected to reveal lower organic sales for the past six months after global trading was hit by the mass closure of pubs, bars and restaurants.

The business will post its update for the half-year to December on Thursday, January 28th.

Experts predict that Diageo will reveal a 4.6 per cent sales slump, while organic operating profits will slide 10.6 per cent over the period as a result of surging coronavirus costs.

Speaking on the development, Russ Mould, investment director at AJ Bell, said: 'Shareholders and analysts will also look for any comments on Brexit from CEO Ivan Menezes,” he said.

He added that trade deals with other key markets such as India and the US can reduce tariffs for Diageo, while its supply chain should be largely unaffected, as most of its raw materials come from domestic sources.

Additionally, shareholders reportedly appear confident that the company could be well-placed when economies reopen and lockdown restrictions lift, due to the fact that its shares are only down 5 per cent in the past 12 months.

In related news, Diageo's Finance Chief, Kathryn Mikells, is expected to leave the company by the end of June after six years with them.