Today, beverage giant Diageo announced its fiscal Q3 trading statement and a report indicating that the company anticipates an annual $150 million impact from tariffs.
Debra Crew, Chief Executive, reported, “In the third quarter we delivered strong organic net sales growth and are on track to deliver on our guidance of sequential improvement in organic net sales performance in the second half of fiscal 25. We also reiterated our organic operating profit outlook for fiscal 25, including the impact of tariffs based on what we know at this time. We continue to believe in the attractive long-term fundamentals of our industry and in our ability to outperform the market. We view the near-term industry pressure as largely macro-economic driven, with continued uncertainty impacting both the timing and pace of recovery.”
The company’s Q3 earnings amounted to $4.38 billion, reflecting a 3% increase compared to the same period in 2024.
The company also announced its Accelerate programme which Crew says will be detailed further in August. Accelerate will set out “clear near-term cash delivery targets and a disciplined approach to operational excellence and cost efficiency. It will strengthen Diageo by increasing our effectiveness, agility, and resilience. It will also ensure that we are well-positioned to deliver sustainable, consistent performance while maximising shareholder returns; even if current trading conditions persist.”
According to the company’s statement on tariffs, “Our long track record of managing international tariffs gives us confidence in our ability to navigate this successfully.”
“We expect that given the actions that we have in place already, before any pricing, we will be able to mitigate around half of this impact on operating profit on an ongoing basis.”
By CEO NA Editorial Staff
