Diageo: guidance withdrawn, buybacks suspended

(CercleFinance.com) - Diageo withdrew its full-year growth guidance for organic sales and operating profit, citing uncertainty around the severity and duration of the Covid pandemic.


In a statement, the British drinks giant noted that it is not in a position to accurately assess the impact of the outbreak on its future financial performance.

While the group plans to pay an interim dividend to shareholders as scheduled on 9 April, Diageo said that it will not begin the next phase of its share buybacks over the rest of the year.

On a more positive note, however, the spirits maker said it is beginning to see a very slow return of out of home consumption in China, as restaurants and bars have started to gradually re-open.

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