US EditionGuinness Owner Diageo Ups Savings as US Tariffs Hit
GREATER LONDON, ENGLAND, AUG 5 – Diageo plans to increase cost savings to £625 million after operating profits fell 27.8% amid weaker demand and supply issues, the company said.
- Diageo, the British spirits group known for Guinness and Johnnie Walker, reported net sales dipping 0.1% to $20.2 billion for the year ending June 30, 2025.
- This decline followed weaker consumer demand, tariff-related financial impacts from US President Trump's measures announced in May, and the sudden departure of CEO Debra Crew last month.
- Although sales volume declined, Diageo experienced a 6.7% increase in net sales in Great Britain, supported by strong demand for Guinness despite supply shortages, while its operating profits decreased by 27.8%, totaling $4.33 billion.
- Interim CEO Nik Jhangiani said, "the savings plan is not about job cuts," though some layoffs will occur as the company raises cost-saving targets from $500 million to $625 million.
- Diageo’s extended cost-saving program and focus on controllable factors aim to improve financial results amid macroeconomic uncertainty and evolving consumer habits in the spirits sector.
Insights by Ground AI
Does this summary seem wrong?
42 Articles
42 Articles
The British alcoholic beverage giant Diageo, who owns Guinness, Smirnoff and Baileys, presented an annual profit on Tuesday in sharp decline.
·Montreal, Canada
Read Full Article
Coverage Details
Total News Sources42
Leaning Left10Leaning Right1Center8Last UpdatedBias Distribution53% Left
Bias Distribution
- 53% of the sources lean Left
53% Left
L 53%
C 42%
Factuality
To view factuality data please Upgrade to Premium
