StockMarketWire.com - Alcoholic drinks maker Diageo warned on profit following 'significant' disruption in drinks consumption in on-trade business in the wake of a rise in the coronavirus outbreak both in and outside of Asia.

'We estimate the negative impact in fiscal 2020, on the group's organic net sales and organic operating profit, to be in a range of £225m to £325m and £140m to £200m, respectively, with the timing and pace of recovery determining the impact within these estimated ranges,' Diageo warned.

The warning on performance came as the company identified a slowdown in drinks consumption amid a weaker on- trade business and reduced retail travel activity.

'The outbreak has caused a significant reduction in international passenger traffic, especially in Asia,' Diageo said. 'The outbreak in several other Asian countries, especially South Korea, Japan and Thailand, has led to events being postponed, a reduction in conferences and banquets, and a drop in tourism which have all impacted on-trade consumption.'

Diageo said it expected to see a gradual improvement throughout the fourth quarter of fiscal 2020.

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