Shares in Guinness owner Diageo fell more than five per cent this morning after the drinks giant revealed that profit almost halved this year.
Diageo said this morning that operating profit in the year ended 30 June fell 47 per cent from £4.04bn to £2.13bn.
Net sales dropped nine per cent from £12.86bn in 2019 to £11.75bn. Earnings per share fell 54 per cent to 60.1p.
Exceptional operating items included a non-cash impairment charge of £1.3bn, in India, Nigeria, Ethiopia and Korea, due to challenging trading conditions during the coronavirus pandemic.
Diageo recommended a dividend of 43.47p per share, the same as last year.
What Diageo said
Chief executive Ivan Menezes said: “Fiscal 20 was a year of two halves: after good, consistent performance in the first half of fiscal 20, the outbreak of Covid-19 presented significant challenges for our business, impacting the full year performance.
“Through these challenging times we have acted quickly to protect our people and our business, and to support our customers, partners and communities.”
He added: “While the trajectory of the recovery is uncertain, with volatility expected to continue into fiscal 21, I am confident in our strategy, the resilience of our business and am very proud of the way our people have responded. We are well positioned to emerge stronger.”
More to follow