Johnnie Walker and Guinness maker Diageo has seen operating profit slump 4.8% following a steep decline in sales in Latin America and the Caribbean.

The world’s biggest spirits maker has faced investor unrest after a build up of unsold inventory in Mexico and Brazil led to a profit warning and a loss of market share in its biggest territory, the United States.

Chief Executive Debra Crew said the company was taking steps to turn the situation around.

“We are confident that when the consumer environment improves, the actions we are taking will return us to growth,” she said in a statement.

Analysts had expected a 4.5% fall in annual operating profit. Diageo had previously said sales in Latin America and the Caribbean would fall by between 10% and 20%.

Overall, group net sales declining 0.6%.