BalkansCat
Diageo (New York Stock Exchange: DEO) is reportedly looking to sell several brands of beer, potentially including Smithwick's, Kilkenny, Harp Lager and Tusker. Sources said axios that the beer business is affecting Diageo's (DEO) overall margins. He It is unclear whether some of the sector's beer giants have the dry powder or motivation to take on the relatively small brands.
Last month, Diageo (DEO) shook investors with a sharp cut to its forecasts. The company lowered its revenue and profit forecast for the first half of its fiscal year due to a materially weaker performance outlook for Latin America and the Caribbean. The region is expected to see a 20% decline in organic sales over the six-month period.
Diageo on the Latin America and Caribbean business: “LAC is experiencing very strong organic net sales growth of 20%, compared to the first half of FY23. Macroeconomic pressures in the region are resulting in a lower consumption and a decline in consumer commerce. These impacts are slowing progress in reducing channel inventory to levels appropriate for the current environment. Despite the slowdown in category growth, our business continues to gain share in the most markets, within the categories in which we participate.
Diage (DEO) shares fell 0.39% in afternoon trading Tuesday at $141.38 versus the 52-week range of $135.63 to $190.48. The current dividend yield for new DEO buyers is 2.77%.
