Diageo Withdraws Guidance, Puts Capital-Return Program on Hold

   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Diageo PLC said Thursday that it has withdrawn guidance for fiscal 2020 and put its three-year capital-return program on hold due to the coronavirus crisis, but the company plans to pay an interim dividend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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