Diageo plc ADR (DEO)

Shares of Diageo Plc (DEO) dropped by 11.72% from $159.96 to $141.21 in the trading on Friday, Novemeber 10, 2023. The reasons why DEO down include:

• Weaker Latin American Business Performance: Diageo expects slower growth in the Latin America and Caribbean (LAC) region in the first half of fiscal-year 2024 compared to the second half of fiscal 2023, leading to a significant drop in performance in this important market segment.
• Decline in Organic Net Sales: Diageo specifically mentioned that organic net sales in the LAC region are expected to decline by more than 20% year over year. This decline in sales is a concerning factor for investors.
• Macroeconomic Pressures: The company attributed its weakness in Latin America to macroeconomic pressures that are impacting consumer consumption. These pressures have led to "consumer downtrading," where buyers shift from larger, more expensive products to smaller, lower-priced alternatives or different brands.