Diageo Withdraws Guidance, Puts Capital-Return Program on Hold
April 09 2020 - 2:49AM
Dow Jones News
By Adria Calatayud
Diageo PLC said Thursday that it has withdrawn guidance for
fiscal 2020 and put its three-year capital-return program on hold
due to the coronavirus crisis, but the company plans to pay an
interim dividend as scheduled.
The maker of Johnnie Walker whisky, Guinness beer and Smirnoff
vodka said it hasn't started the second phase of its 4.5
billion-pound ($5.56 billion) capital-return program and won't do
so during the remainder of the year ending June 30. Under the first
phase of the program, which ended Jan. 31, the company returned
GBP1.25 billion to shareholders via share buybacks.
Widespread containment actions put in place by governments
across the globe in March, including the closure of bars and
restaurants, are having a significant impact on the business,
Diageo warned. In mainland China, the company is beginning to see a
slow return of on-trade consumption.
Diageo said it isn't in a position to accurately assess the
impact of the coronavirus pandemic on its performance given the
uncertainty around the severity and duration of it across multiple
markets. The company said it is taking actions to ensure it
maintains good liquidity. It is also reducing discretionary
expenditure and reallocating resources across the group.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
April 09, 2020 02:34 ET (06:34 GMT)
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