This archive report was first published on 4 August 2020.
On August 4, 2020, British drinks group Diageo announced a substantial decline in its annual profits, attributing the drop to the COVID-19 pandemic.
According to the company's earnings statement, Diageo's profit after tax slid to £1.4 billion ($1.8 billion, Sh194.4 billion) in the 12 months to June 30, compared to £3.16 billion (Sh443.06 billion) in the previous year.
Chief executive Ivan Menezes stated that the outbreak of COVID-19 presented significant challenges for the company, impacting its full-year performance.
Diageo's share price plummeted 5.5 percent to £27.22, making it the biggest faller on London's FTSE 100 index in morning trade.
Investment director Russ Mould noted that the company's disappointing results were a result of the pandemic's impact on sales in pubs, restaurants, and bars, as well as at big sporting events and music festivals.
Annual sales dropped nine percent to £11.75 billion, and the company booked an impairment charge of £1.3 billion, reflecting the pandemic's impact and challenging trading conditions in parts of Asia and Africa.
