Drinks maker Diageo Plc cut its full-year sales and profit forecasts on Thursday amid weakness in Chinese white spirts and a slowdown in demand in North America.
The company now expects 2026 organic net sales to be flat to slightly lower. It said this includes adverse impact from Chinese white spirits and a weaker-than-expected US consumer environment.
Meanwhile, organic operating profit growth is expected to be low to mid-single digit.
For the first quarter, Diageo said organic net sales were flat, with organic volume growth of 2.9% offset by negative price/mix of 2.8%, largely due to adverse mix in Asia Pacific due to the weaker results in China in Chinese white spirits (CWS).
It pointed out that excluding this, price/mix would have been relatively flat.
Interim chief executive Nik Jhangiani said: "Net sales were flat organically in Q1, with growth in Europe, LAC and Africa offset by weakness in Chinese white spirits and a softer US consumer environment than planned for.
"We are not satisfied with our current performance and are focused on what we can manage and control; acting with speed to drive efficiencies, prioritising investment and adapting more quickly to an evolving consumer environment.
"We are well advanced in sharpening our strategy, and we are developing and already implementing clear plans to drive growth across the broader portfolio, ensuring that we meet relevant consumer occasions of the future. Early results from our initiatives to strengthen our commercial execution capabilities, notably in Europe, are encouraging, and we are embedding a more rigorous performance-driven culture across the business."