Shares in Diageo, maker of Guinness stout and Johnny Walker whisky, tumbled Tuesday after the British group posted slumping annual profit on souring demand in Latin America and the Caribbean for its alcohol.
Overall net profit dropped almost 13 per cent to $3.9 billion (£3bn) in its financial year to the end of June compared with 2022-2023.
Diageo, whose brands include Smirnoff vodka, Baileys liqueur and Captain Morgan rum, added in a statement that total sales slid 1.4 per cent to $20.3 billion.
In reaction, shares nosedived almost eight percent to £23.5 on London's falling stock market, making it the biggest loser.
"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," said chief executive Debra Crew.
The performance was "impacted by materially weaker performance" in the Latin America and Caribbean region -- and despite "resilient" growth in Africa, Asia Pacific and Europe, she noted.
North America was dented by a "challenging" consumer backdrop.
Latin America and Caribbean sales slumped more than one fifth.
The stock was slammed by investors who remained unconvinced over Crew's stewardship.
"Diageo has gone from bad to worse... it's clear that something major has to change," said Russ Mould, investment director at AJ Bell.
"Following the latest sell-off, Diageo's share price is now trading at a seven-year low. That's the market's way of saying it is thoroughly unimpressed with the business."
