DRINKS manufacturing giant Diageo has warned it expects to take a profit hit of up to £200m due to the impact of coronavirus, which has seen bars and restaurants close and events cancelled across Asia.

Diageo — the owner of Guinness, Johnnie Walker whisky and Smirnoff vodka — yesterday said group organic sales could be down £225m to £325m in the fiscal year.

Operating profit is expected to drop between £140m and £200m during the period, after the outbreak led to events being postponed, a reduction in conferences and a fall in tourism.

In China, the company said bars and restaurants have been shuttered and there was a "substantial reduction in banqueting".

Diageo said it expects consumption to pick up towards the end of the 2020 fiscal year.

Performance in other countries — particularly South Korea, Japan and Thailand — has also been affected.

A drop in international air traffic has hurt sales, particularly in Asia, and the firm expects to see a weaker performance in its travel retail division for the rest of the financial year.

(c) 2020 City A.M., source Newspaper