Q4 2023 Diageo PLC Trading Update Call Transcript
Good morning. At our year-end results for fiscal '23, I guided that we expected to see sequential improvement in our business results in the current fiscal year. At the group level, we are seeing slower-than-expected growth and we no longer are expecting fiscal '24 half 1 to be stronger than fiscal '23 half 2. This is due to a materially weaker performance outlook in Latin America, which makes up nearly 11% of Diageo's net sales value. Importantly, we have momentum continuing in 4 out of our 5 regions, including seeing sequential improvement in our largest regions of North America.
So what are we seeing in Latin America? Well, LAC is now expected to decline organic net sales by more than 20% year-over-year in the first half of fiscal '24. If you remember, we disclosed back in August that we ended fiscal '23 with higher-than-expected inventory levels as economic activity has slowed post our shipments for World Cup. But we are now seeing 2 additional headwinds in the region.
First, consumer conditions have worsened. Macroeconomic
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
