Diageo set to reveal Far East turmoil has damaged profits
Saturday 17 January 1998
Analysts believe the problems in Asia will turn out to have a much bigger impact on earnings than first thought as the crisis spreads throughout the continent and threatens to dampen economic growth.
The Far East contributes up to 10 per cent of Diageo's profits. However demand for spirits such as whisky has fallen as the financial crisis has bitten and there is evidence of customers switching to cheaper, lower margin spirits brands. The continued slump in the value of Far Eastern currencies will also reduce earnings in pound terms. The brokers Societe Generale have knocked pounds 35m off profit forecasts for the year to June. The cuts mirror moves by other analysts who have reduced earnings estimates by as much as pounds 70m over the next few years.
One drinks analyst said: "Diageo is expected to confirm analysts' predictions that its problems in the Far East have escalated."
- 1 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 3 Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...