Diageo Johnnie Walker Red Label bottles in the Supermarket in Chelmsford, Great Britain, on Tuesday, January 28, 2025.
Bloomberg Getty images
Ghost producer Diageo He said on Tuesday that he was taking steps to deal with the potential influence of American tariffs on key regions of the supply chain and removed its medium -term guidelines due to macroeconomic and geopolitical uncertainty.
CEO Debra Crew said that the perspective of tariffs may hinder the company's efforts to regain falling sales and that it has added “further complexity” of its ability to provide updated tips.
Diageo previously forecasted an average periodic increase in organic sales by 5% to 7%.
Diageo shares fell by about 2.5% in the opening trade in London.
“We take a number of actions to relieve the impact and disturbance of our activities that can cause tariffs, and we will continue to engage with the US administration in a broader influence that it will have on all supporting American hotel industry, including consumers, employees, distributors, distributors, Restaurants, bars and other retail outlets, “said Crew in a statement accompanying the company's temporary earnings.
In Tuesday's call to earnings, the financial director of the Supreme Audit Office Jhangiani said that American tariffs were expected to be expected and that the company was taking and will continue to implement a number of activities to relieve influence. Such funds include price strategies, inventory management, supply chain adaptation and investment realocation.
He added further updates when the management can “forecast the financial impact of tariffs more accurately,” he added.
The 100% FTSE company recorded a 0.6% drop reported by the first half of sales to $ 10.9 billion, a bit ahead of $ 10.7 billion estimated by analysts in the LSEG survey.
Diageo.
Spirits, including Tanqueray, Gordon's and Smirnoff, recorded the highest decreases in net sales, while Guinness was a clear protruding, playing a double -digit growth over the eighth in a row half a year. This happened despite the disturbance of the supply chain, which led to the deficiencies of the popular Irish stoup during the holiday season.
The producer of drinks was under the pressure of investors in the midst of falling sales, changes in management, growth of slimming drugs-who can be able to reduce alcohol consumption-and a wider trend towards products with low and without alcohol.
The actions of Diague-where brand are Johnnie Walker, Captain Morgan and Don Julio-Spadły on Monday by 3% among a wider global sale, because investors assess the economic impact of Trump's tariffs on imports from Canada, Mexico and China.
Almost half (46.2%) of sales in the US comes from imports from Mexico and Canada, including brands such as Crown Royal, Don Julio and Casamigos, Jefferies analysts estimated on Sunday in the note.
The tequosli bottle of Casamigos Reposado in a restaurant in Los Angeles, California, California
Bloomberg Bloomberg Getty images
Compared to just over a third (35.3%) sales in the US imported from Mexico and Canada for the Italian Campari group and 6% equivalent to French Pernod Ricard.
Therefore, it can be expected that DiagEo will raise prices for American consumers by about 4.6% – and this is before all possible new tariffs for EU goods, analysts said.
In 2024, Diageo informed its first decline in global sales from the beginning of 2020. Sales dropped by 1.4% to USD 20.3 billion in the year ended in June. After a prior warning of profit in November 2023, which showed a decrease in sales in Latin America, the Caribbean and
Diageo shares are currently near the falls of the pandemic, despite short climbing last month in reports that this was considered the sale of your brand of the Guinness Beer Brand of the best resulting from the portfolio of the group-Lub of its shares LVMHThe unit of drinks must have Hennessy.
In the issued statement on January 26, the company said that “does not intend to sell” by sending shares again.