Spirit giant Diageo scraps sales target as US tariffs loom

Johnnie Walker and Guinness shaper Diageo has scrapped a cardinal income people amid increasing uncertainty implicit US tariffs and volatile user demand.

The tone elephantine has said it is talking with the US Government implicit upcoming tariff policies that could “impact” its income recovery.

It said the confirmation implicit the play that tariffs volition beryllium imposed, though delayed for astatine slightest a month, “adds further complexity” to its quality to foretell aboriginal trading.

Diageo said its tequila and Canadian whisky brands are expected to beryllium peculiarly affected.

It came arsenic the London-based institution revealed that nett income dipped by 0.6% to 10.9 cardinal dollars (£8.8 billion) for the six months to December 31, arsenic an summation successful integrated income was dragged backmost by “unfavourable” currency speech rates.

Reported operating nett declined 4.9% for the period.

In Great Britain, the group’s income grew 2% arsenic it was buoyed by soaring request for Guinness, contempt “temporary proviso constraints” successful caller months.

British pubs reported shortages of Guinness implicit the Christmas play arsenic they were incapable to unafraid capable of the brew to conscionable precocious demand.

Guinness income maturation offset weaker tone income successful Britain, which were down by astir 6% for the half-year.

Debra Crew, main enforcement of Diageo, said: “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.”