Diageo sees brighter outlook after India liquor ban

Diageo, the maker of Johnnie Walker whisky and Smirnoff vodka, forecast stronger sales and profit growth in the second half of its financial year after a first half affected by negative factors in China and India and higher spending.

The world’s biggest spirits maker said its first-half sales growth would be hurt both by the Chinese New Year falling later than in 2017 and a ban on selling alcohol near Indian highways.

Diageo gave the warning in a trading update ahead of its agm, sending its shares down 2% and making them the weakest performer on the FTSE 100 Index.