DEO - Johnnie Walker Maker Diageo Tanks After Missing Estimates Latin America Woes Deepen | Benzinga
In a recent development, the shares of Diageo Plc (NYSE:DEO) have taken a hit, dropping over 3%. This comes after the company, known for its Johnnie Walker whisky and Tanqueray gin, reported a decline in organic net sales, missing analyst estimates. The spirits giant also warned of further challenges in Latin America, where unsold stock accumulates.
What Happened: Diageo’s shares fell by over 3% on Tuesday, following the company’s warning of additional difficulties in Latin America, Reuters reported. This announcement has compounded investor concerns about the accumulation of unsold stock in the region, which may prove challenging to clear.
The company’s organic net sales experienced a slight decline, just missing analyst estimates. Diageo also noted a decrease in its largest market, North America, where it has been losing market share.