Diageo Lowers Full-Year Outlook on Weak China, US Demand (2)

Diageo Plc lowered its full-year outlook for sales and profit as weak demand in China and the US weigh on the British distiller.

The maker of Guinness stout and Johnnie Walker whisky now expects full-year organic net sales to be flat to slightly down, the company said Thursday, citing reduced consumption in China and a weaker-than-expected US consumer environment. It had previously forecast growth at a similar level to the prior year.

The distiller’s shares dropped as much as 3.9% in London, the most since July. They had fallen 29% this year through Wednesday, compared with a 22% decline in ...