Johnnie Walker maker Diageo scraps key sales target amid threat of US tariffs

The London-based institution has scrapped a cardinal income people and said it is talking with the US Government implicit upcoming tariff policies that could "impact" its income recovery

Johnnie Walker and Guinness shaper Diageo has ditched a cardinal income people amid increasing uncertainty surrounding US tariffs and unpredictable user demand.

The drinks behemoth is successful discussions with the US Government regarding impending tariff policies that could "impact" its income comeback. With the play confirmation of incoming tariffs, albeit deferred for astatine slightest a month, Diageo admitted this "adds further complexity" to its quality to forecast aboriginal trading.

The institution highlighted that its tequila and Canadian whisky offerings are apt to carnivore the brunt of the impact. Diageo's half-yearly figures revealed a flimsy dip successful nett income by 0.6% to $10.9bin (£8.8bn) up to December 31, attributing the diminution to "unfavourable" currency exchanges, which offset integrated income growth. Meanwhile, reported operating nett took a 4.9% deed during the aforesaid clip frame.

In Great Britain, however, the radical saw a 2% income uptick, driven by a important surge successful Guinness request contempt caller "temporary proviso constraints" This comes aft British pubs experienced Guinness shortages implicit the vacation play owed to insufficient supplies to fulfill precocious demand. Nonetheless, the coagulated show of Guinness counterbalanced a astir 6% slump successful tone income wrong the UK for the half-year.

Diageo CEO Debra Crew commented connected the situation, stating: "Our fiscal 2025 first-half results marked a instrumentality to growth, delivering integrated nett income maturation of 1% contempt a challenging manufacture backdrop arsenic consumers proceed to navigate done inflationary pressures.

"The confirmation astatine the play of the implementation of tariffs successful the US, whilst anticipated, could precise good interaction this gathering momentum.

"We are taking a fig of actions to mitigate the interaction and disruption to our concern that tariffs whitethorn cause, and we volition besides proceed to prosecute with the US medication connected the broader interaction that this volition person connected everyone supporting the US hospitality industry, including consumers, employees, distributors, restaurants, bars and different retail outlets."