DEO - Why Diageo Stock Dropped on Friday
2023-11-10 21:00:09 ET
Shares of Diageo (NYSE: DEO) fell 11.7% on Friday after the alcoholic beverage company warned of a sharp slowdown in growth for its business in Latin America.
More specifically, in a press release early Friday morning, the company said that it now expects to see slower growth in the first half of fiscal-year 2024 than in the second half of fiscal 2023. The culprit, it says, is primarily a "materially weaker performance outlook in the Latin America and Caribbean (LAC)," a region representing almost 11% of net sales volume last fiscal year.
In particular, organic net sales are now expected to decline by more than 20% year over year in the LAC region (the company's fiscal year ends on June 30).
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Why Diageo Stock Dropped on Friday