Spirit company Diageo warns coronavirus could curb 2020 profit by £2 billion


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Spirit company Diageo warns coronavirus could curb 2020 profit by £2 billion

On Wednesday, the 26th of February 2020, London-based British multinational alcoholic beverage company, Diageo Plc., the world’s largest spirit manufacturing company, said in a statement that the fast-spreading coronavirus outbreak across greater China alongside Asia-Pacific region, could downsize its 2020 operating profit by as many as £2 billion, joining a string of global multinational conglomerates operating on wide-ranging sectors such as electronics, consumer goods and luxury products who had already raised an alarming bells over their profit outlooks due to the virus outbreak.

Aside from that, the London-based world’s largest spirit maker, Diageo Plc. had also added in its Wednesday’s (February 26th) statement that in the Greater China, almost all of the bars and restaurants were closed and there had been a substantial scale of slump in sales, while its China supply chain remained disrupted since end-January adding the company was expecting it to last until March.

On top of that, adding that the company was expecting a hit at its organic net sales between £2.25 billion and £3.35 billion this year, Diageo Plc. was also quoted saying at its Wednesday’s (February 26th) statement that the company was expecting a gradual improvement in sales and operating profit by June, 2020.