Diageo Plc , the world's largest spirits maker, took a 1.3 billion pound writedown as it reported a bigger than expected decline in underlying net sales on Tuesday as demand for its whisky, vodka and gin fell in nearly all markets.
This marks the company's worst annual sales performance in more than a decade, according to Bernstein analysts. North America was the only bright spot, with sales rising 2per cent, reflecting strong demand for tequilas and ready-to-drink beverages at supermarkets and alcohol stores, the company said. "The hit to earnings should be short lived provided the global economy doesn't take too long to recover," William Ryder, equity analyst at Hargreaves Lansdown said."We think the group will continue to do well long term, but management will have to focus more on debt reduction than they probably would have liked."
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