Coronavirus: Drinks Giant Warns of Profit Hit as Bars Close ||| NEWS CORNER

Drinks giant Diageo has warned that its profits in 2020 will be hit, as bars and restaurants are forced to close because of the coronavirus outbreak.

The Guinness-owner said that operating profits were likely to be between £140m and £200m lower than expected, due to disruption in Asian markets.

It joins companies such as Apple and Danone in warning about the impact of the deadly virus.

Financial markets also fell sharply this week as fears of a pandemic grew.

Diageo also warned on Wednesday that it expected sales to be between £225m and £325m lower than expected, depending on how long it took for the outbreak to abate.

In a statement it said: “Bars and restaurants have largely been closed and there has been a substantial reduction in banqueting… We have seen significant disruption since the end of January which we expect to last at least into March.

“Thereafter, we expect a gradual improvement with consumption returning to normal levels towards the end of fiscal 2020.”