Group 1 - Diageo's shares declined by 5.3% following a disappointing second-quarter earnings report, particularly affected by weak performance in the Americas [4][8] - The company's adjusted operating profit fell by 5% on an organic basis to $5.9 billion, and adjusted earnings per share decreased from $1.97 in 2023 to $1.80 [3][6] - Overall revenue for the fiscal year ending June 20 declined by 1.4% to $20.3 billion, missing estimates of $21.2 billion, with organic sales down 0.6% [5][6] Group 2 - CEO Debra Crew indicated that Fiscal 24 was challenging due to macroeconomic and geopolitical volatility, but expressed confidence in future growth as consumer demand improves [6] - The outlook for 2025 remains cautious, with expectations of continued challenging conditions, although there is hope for improved sales growth when demand recovers [6][7] - Overall volume sales in the quarter decreased by 5%, with declines in all regions except for Europe, which remained flat, and a slight increase of 1% in the Asia-Pacific region [9][10]
Why Diageo Stock Was Slipping Today