Guinness maker Diageo braces for £113m US tariff impact
- Diageo, the London-listed maker of Guinness and Johnnie Walker, launched a $500 million cost-cutting plan in 2025 to reduce debt and improve cash flow.
- The plan follows rising US trade tariffs expected to cost Diageo around $150 million annually and a prior $200 million profit hit forecast earlier in 2025.
- Diageo reported 2.9% net sales growth to $4.37 billion in the quarter to March 31, driven by strong Guinness sales and 5.9% North American growth offsetting a 1.3% European sales dip.
- CEO Debra Crew reported robust growth in organic net sales during the third quarter and confirmed that the company remains on course to achieve its forecasted gradual increase in organic net sales throughout the latter half of fiscal year 2025.
- The cost-saving and agility initiatives intend to offset tariffs' impact, support investment, and position Diageo for long-term market outperformance amid macroeconomic uncertainty.
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Diageo says it will face £111m hit from tariffs — despite Trump trade deal
DRINKS giant Diageo has said it will face a £111million hit from tariffs — despite the UK striking a trade deal with Donald Trump. Chief executive Debra Crew said the firm would look to work around the higher costs partly by increasing prices, which will impact US drinkers. GIGIL/DIAGEODiageo has said it will face a £111million hit from tariffs — despite the UK striking a trade deal with Donald Trump[/caption] The Guinness, Smirnoff and Johnnie …
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