Diageo warns sales dip in China and India to affect first-half earnings
London — Diageo, the maker of Johnnie Walker whisky and Smirnoff vodka, forecast stronger sales and profit growth in the second half of its financial year after a first half affected by negative factors in China and India and higher spending. The world’s biggest spirits maker said earlier on Wednesday that its first-half sales growth would be hurt both by the Chinese New Year falling later than in 2017 and a ban on selling alcohol near Indian highways. Diageo gave the warning in a trading update ahead of its annual general meeting in London on Wednesday, sending its shares down 2% and making them the weakest performer on the FTSE 100 Index. India’s top court banned liquor outlets within 500 metres of national and state highways in April, in a move that was expected to hit revenue for spirits makers such as Diageo and French rival Pernod Ricard. Diageo, however, stood by its target for sales growth in the mid single digits and an improvement in its organic operating margin of 175 bas...
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