Diageo profits sink despite tasty Guinness sales

A "PERFECT storm" of macroeconomic woes and tighter consumer spending in Latin America helped push first-half pre-tax profits at drinks maker Diageo down by 15% to $3.1 billion as the London-based maker of Gordon's gin and Johnnie Walker was hit by a worldwide slump in demand for spirits.

The Latin America region, its worst-performing globally, saw organic net sales decline by almost a quarter in the six months to end December, led by a double-digit decline in scotch, particularly Buchanan's, Johnnie Walker Black Label and Old Parr, which the firm put down to "fast-changing consumer sentiment and high inventory levels".