Sector movers: Diageo drags beverage stocks lower on emerging-market concerns

30th Jan 2014 15:26

Drinks manufacturer Diageo was dragging the beverage sector into the red on Thursday as investors reacted negatively to the company's first-half results which missed analysts' expectations.The company, famous for its Johnnie Walker and Guinness brands, reported a 3% fall in volumes in the first half with sales growth limited to just 1.8%.Diageo said that decent growth in the US and Western Europe helped it to "absorb the current challenges in some of our emerging markets". However, inventory levels were reduced in several key emerging markets which led to a weaker second quarter, it said.The stock was down 4.5% at 1,823.5p.Analysts at Canaccord Genuity said that results show that Diageo is "not immune to broader macroeconomic pressures, especially at present in many key emerging markets". They recommended investors to be "cautious" about earnings forecasts for this year and the next.Lager giant SABMiller was also unwanted, having reported a decline in earnings at part-owned Altria Group for both the full-year and the final quarter.Britvic was extending losses after underwhelming with an in-line first-quarter update yesterday after group revenue rose 2.8% to £311.8m.Small-cap premium drinks group Blavod Wines & Spirits was in the red today despite saying that net revenues from owned brands increased by an annual rate of 43% in its third quarter.The company, which is currently running at a loss, said that it remains on track to break-even by the early part of the next financial year which begins in April.Top performing sectors so far todayAutomobiles & Parts 9,263.42 +0.94%Electricity 8,955.42 +0.86%Industrial Transportation 3,314.43 +0.82%Health Care Equipment & Services 4,945.55 +0.57%Gas, Water & Multiutilities 5,537.80 +0.56%Bottom performing sectors so far todayBeverages 13,271.90 -3.10%Industrial Metals & Mining 1,109.37 -2.50%Personal Goods 23,368.06 -2.14%Support Services 6,251.74 -1.11%Industrial Engineering 10,070.46 -1.04%BC