Close Menu
  • Home
  • Europe
  • United Kingdom
  • World
  • Politics
  • Business
  • Culture
  • Health
  • Sports
  • Tech
  • Travel
Trending

Love Islander Demi Jones says she brushed off key symptom before cancer diagnosis

July 3, 2025

Latest news bulletin | July 3rd – Morning

July 3, 2025

UK weather maps show when 30C temperatures will return – see full list of dates

July 3, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram YouTube
Se Connecter
July 3, 2025
Euro News Source
Live Markets Newsletter
  • Home
  • Europe
  • United Kingdom
  • World
  • Politics
  • Business
  • Culture
  • Health
  • Sports
  • Tech
  • Travel
Euro News Source
Home»Business
Business

Guinness maker Diageo braces for a €133 million US tariff hit

News RoomBy News RoomMay 19, 2025
Facebook Twitter WhatsApp Copy Link Pinterest LinkedIn Tumblr Email Telegram

Diageo, a world leader in spirits making, has emerged from a long and challenging period with a forecasted $150 million drop in net operating income after U.S. trade tariffs this year. The company, known for its businesses in beer, spirits, and wine, has been under heightened pressures, including a 21% decline on its London-listed share price. CEO Debra Crew highlighted that the industry’s recovery is driven by macroeconomic factors, with uncertainty affecting the pace and timing of its return. Despite this, Diageo has scaled back significant expenses, investing $500 million over three years to bolster its future growth and improve operational efficiency.

In the third quarter, Diageo’s organic net salesเธ Liberty began rising by 5.9%, though this trend continued in the second quarter, growing by 2.9% to $4.4 billion (€3.9 billion). These gains are affirmed by future targets for organic sales growth. The company also maintains confidence in its operating profit, anticipation being lifted by tariffs factored in. Transition to tariffs began mid-year and is expected to affect its quarterly operations, yet Diageo has emphasized its ability to improve its profitability.

Operating profit is set to decline slightly in the second half of the fiscal year but has already accounted for the impact of the tariffs. For the first half of 2025, Diageo is optimistic about organic profit growth surpassing organic sales growth, particularly post-Tariff conditions. However, this expectation is tempered by risks related to the trade war and operational adjustments. Moving into 2025, Diageo aims for positive operating leverage, with organic profit growth ahead of net sales growth.

Looking ahead, Diageo forecasts to report $3 billion in free cash flow for fiscal 2025, indicating strong cash runway for expansion. The company is optimistic about its continued growth and financial resilience, weighing the impact of current trade tensions on its business model. As the sector recovers, Diageo looks to sustain healthy profit margins while exploring new markets and partnerships. Despite potential challenges, the company’s focus on cost-cutting and operational efficiency provides a Vladimir buffer for future growth.

(End of summary)

Share. Facebook Twitter Pinterest LinkedIn Telegram WhatsApp Email

Keep Reading

Tesla sales fell sharply in the last three months, and Musk is to blame

Business July 2, 2025

Paramount pays Trump $16 million to settle ‘60 Minutes’ lawsuit

Business July 2, 2025

Poland trials a four-day working week: A step towards the future?

Business July 1, 2025

US stocks rise as investors prepare for Trump’s tariff deadline

Business July 1, 2025

Nike expects US tariffs to cost it $1bn and warns of falling sales

Business June 27, 2025

C-suite overconfidence in AI could prove bad for business, says survey

Business June 27, 2025

RTL to buy Sky Deutschland for €150mn in TV consolidation effort

Business June 27, 2025

Tariffs: France and Germany pursue different tacks towards US deal

Business June 27, 2025

How much more have billionaires amassed in the last 10 years?

Business June 26, 2025

Editors Picks

Latest news bulletin | July 3rd – Morning

July 3, 2025

UK weather maps show when 30C temperatures will return – see full list of dates

July 3, 2025

Ethan Ives-Griffiths’ grandma wipes tears in court as she denies assaulting tot

July 3, 2025

Estonia says arson attack on Ukrainian restaurant was order by Russia’s intelligence services

July 3, 2025

Latest News

What NHS overhaul means for you as Keir Starmer unveils 10-year ‘reform or die’ plan

July 3, 2025

Body of teenage boy pulled from Suffolk river after he entered water with friends

July 3, 2025

Man who tried to kill wife in ‘frenzied’ bow and arrow attack jailed for 20 years

July 3, 2025

Subscribe to News

Get the latest Europe and World news and updates directly to your inbox.

Facebook X (Twitter) Pinterest Instagram
2025 © Euro News Source. All Rights Reserved.
  • Privacy Policy
  • Terms
  • Contact

Type above and press Enter to search. Press Esc to cancel.

Sign In or Register

Welcome Back!

Login to your account below.

Lost password?