Maker of Gordon's and Guinness ramps up cost-cutting after year of plunging profits
GORDON BLANKS Maker of Gordon's and Guinness ramps up cost-cutting after year of plunging profits
GORDON'S and Guinness maker Diageo is ramping up cost-cutting after a tough year of plunging profits.
The UK-based FTSE 100 firm, which also owns brands including Johnnie Walker whisky, said operating profits had fallen by 27.8 per cent to £3.3billion in the year to June 30.
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Gordon's and Guinness maker Diageo is ramping up cost-cutting after a tough year of plunging profits
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In response, the spirits giant plans to cut costs by £625million over three years, increasing its original target of £500million.
Nik Jhangiani, interim boss of the firm, said the savings plan is 'not about job cuts' but added 'there will be some' as a result.
He stressed that the group could still increase its overall workforce.
Diageo said it expects to secure savings over three years from advertising and promotion efficiencies, reduced overheads and supply chain improvements.
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The increased savings plans come amid a period of upheaval after the departure of its boss last month.
Debra Crew stepped down with 'immediate effect' and by 'mutual agreement', after a recent decline in Diageo's share value.
Tariffs, cautious consumer demand and increased cost pressures have weighed down businesses across the drinks industry.
The global company's net sales dipped 0.1 per cent last year, mainly due to currency issues and changes to its brand portfolio.
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But sales were up by 6.7 per cent in Britain thanks to a strong demand for Guinness.
Dua Lipa downs pint of Guinness as she celebrates five-night sold-out stadium gigs
LOW PAY CALL
THE minimum wage will need to rise by 4.1 per cent next year from £12.21 to £12.71 an hour, says the Low Pay Commission.
The wage has surged in recent years, with 6.5 per cent of workers relying on it.
The Government is also reviewing minimum wage age bands, aiming to reduce the gap for younger workers.
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The commission will provide its recommendations in October, with new rates set to apply from April.
LOANS ALARM
MILLIONS of us are spending thousands more on loans due to poor credit scores, say financial experts Totallymoney.
A £5,000 loan over three years could cost £6,678 extra in interest, while a £10,000 loan could cost an extra £13,541.
Only one in four have checked their credit report in recent years.
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Alastair Douglas at TotallyMoney said: 'Check your report every six months for errors that hurt your score.'
CAR SALES' ELECTRIC PLUG
NEW car sales fell five per cent in July to 140,154 as drivers waited for Government EV grants.
Electric cars accounted for 21.3 per cent of sales, says the Society of Motor Manufacturers & Traders, with discounts of £1,500 to £3,750 now available on Citroën models. Meanwhile, RAC data found UK cars are getting older.
A typical motor is now nine years and ten months, and 41 per cent are more than a decade old.
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Experts say this is slowing the move to greener electric cars.
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