Shares of spirits giant Diageo (NYSE:DEO) tumbled more than 10% in London on Tuesday morning, after the Johnnie Walker-maker posted its first sales decline since the start of the pandemic.
The London-based company said organic net sales dropped 0.6% in the full-year to June 30, largely due to weakness in the Latin America and Caribbean region. Reported net sales were down 1.4%.
Guinness, the Irish stout that has gained popularity among younger consumers in recent years in part due to celebrity endorsements, was the primary driver of overall net beer sales growth of 18%, the company said. Spirits sales meanwhile declined by 1%.
Guinness saw double-digit volume growth largely due to share gains in Ireland and Britain.
Reflecting a broader industry trend, non-alcohol beer sales boomed, with Guinness 0.0 net sales and volumes more than doubling in the fiscal year.
Diageo is also known for brands such as Baileys, Smirnoff, Captain Morgan, Don Julio and Tanqueray.
Chief executive Debra Crew said it had been a “challenging year” for the company and the industry more broadly due to macroeconomic and geopolitical volatility.
North America struggled with a cautious consumer environment as well as inventory restocking issues, Crew said.
DEO shares in New York lost $7.31, or 5.6%, to $124.27, soon after the Tuesday opening.
