Adverse exchange rate movements will hit Diageo’s full-year operating profit, the drinks group said, reducing it by up to £150 million (€206 million).

That figure was more than previously expected. Diageo forecast in July that exchange-rate moves would strip £100 million pounds from operating profit.

The maker of Guinness and Johnnie Walker scotch said it expects “modest organic” profit margin improvement as volume improves.

Diageo, which is mired in a two-year sales slump, reiterated it expects an organic net sales decline of 2 per cent in the first half in North America due to a tougher comparison with the year-earlier period.

Bloomberg