Guinness owner Diageo PLC (LSE:DGE) is expected to report another slide in earnings in its full-year results later this month, with analysts expecting it to lower mid-term guidance as a result.
Ahead of the update on July 30, analysts at Deutsche Bank warned organic sales in the second half may drop by 2%, compared to market consensus of a 0.9% rise.
The Smirnoff and Captain Morgan maker is also expected to suffer a 2.8% fall in organic operating profits, according to the German bank.
“For the full-year, we expect organic operating profit growth of -4.4%, adjusted operating profit of $5,926mn and adjusted net profit of $3,994mn,” analysts said in their latest report.
Forward-looking guidance is expected to be minimal due to the “ongoing headwinds and limited visibility in the US”.
Current targets for 5%-7% organic revenue growth over the medium term are expected to be scrapped by management in the July announcement.
In 2025, Deutsche Bank is expecting revenues to lift by 4.4%, while organic operating profits is predicted to rise by 4.8%.
Deutsche Bank maintained its sell rating for the drinks group and placed a 2,300p target price on the stock, marking a discount to the 2,519p it traded on Monday at.