Latest news with #Gordon's
Yahoo
20-05-2025
- Business
- Yahoo
Guinness maker Diageo braces for a €133 million US tariff hit
London-listed drinks maker Diageo forecast a $150 million (€133.8m) hit from the US trade tariffs annually. The company, which makes Guinness, Johnnie Walker whisky and Gordon's gin, is one of the world's top spirits makers and operates from more than 130 sites across the world. 'We view the near-term industry pressure as largely macro-economic driven, with continued uncertainty impacting both the timing and pace of recovery,' Debra Crew, the company's chief executive, said. Diageo has been struggling with sales and has seen its London-listed share price decrease by more than 21% in the last 12 months. As part of the firm's turnaround efforts, it announced a $500m (€446m) cost savings programme over three years, 'which will enable both reinvestment in future growth and improved operating leverage', noted the report. Related European alcohol industry faces €13bn blow from Trump's 200% tariffs Hungarian filmmakers in the shadow of Trump's tariff threat According to the company's latest trading statement, organic net sales were up 5.9% in the third quarter of Diageo's current financial year ending in March 2025. Net sales for the third quarter increased by 2.9% to $4.4bn (€3.9bn) compared to the previous year. '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,' Crew said. 'We also reiterated our organic operating profit outlook for fiscal 25, including the impact of tariffs based on what we know at this time.' The company is expecting continuous growth in its organic sales for the last quarter of its fiscal year ending in June 2025, compared with the first half of fiscal 25. But the firm also expects 'a slight decline in organic operating profit' in the second half of fiscal 25 compared with the prior year, already factoring in the impact of the tariffs. For the following fiscal year, starting in July 2025, Diageo expects to deliver positive operating leverage, with organic profit growth ahead of organic net sales growth. It forecasts to deliver $3bn (€2.68bn) free cash flow, too. Sign in to access your portfolio
Euronews
19-05-2025
- Business
- Euronews
Guinness maker Diageo braces for a €133 million US tariff hit
London-listed drinks maker Diageo forecast a $150 million (€133.8m) hit from the US trade tariffs annually. The company, which makes Guinness, Johnnie Walker whisky and Gordon's gin, is one of the world's top spirits makers and operates from more than 130 sites across the world. 'We view the near-term industry pressure as largely macro-economic driven, with continued uncertainty impacting both the timing and pace of recovery,' Debra Crew, the company's chief executive, said. Diageo has been struggling with sales and has seen its London-listed share price decrease by more than 21% in the last 12 months. As part of the firm's turnaround efforts, it announced a $500m (€446m) cost savings programme over three years, 'which will enable both reinvestment in future growth and improved operating leverage', noted the report. According to the company's latest trading statement, organic net sales were up 5.9% in the third quarter of Diageo's current financial year ending in March 2025. Net sales for the third quarter increased by 2.9% to $4.4bn (€3.9bn) compared to the previous year. '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,' Crew said. 'We also reiterated our organic operating profit outlook for fiscal 25, including the impact of tariffs based on what we know at this time.' The company is expecting continuous growth in its organic sales for the last quarter of its fiscal year ending in June 2025, compared with the first half of fiscal 25. But the firm also expects 'a slight decline in organic operating profit' in the second half of fiscal 25 compared with the prior year, already factoring in the impact of the tariffs. For the following fiscal year, starting in July 2025, Diageo expects to deliver positive operating leverage, with organic profit growth ahead of organic net sales growth. It forecasts to deliver $3bn (€2.68bn) free cash flow, too.
Rhyl Journal
19-05-2025
- Business
- Rhyl Journal
Guinness maker Diageo braces for £113m US tariff impact
The Guinness and Johnnie Walker maker said it would be impacted by a 10% tariff on UK and European imports into the US, after President Donald Trump launched a raft of tariffs last month. It said it believes its current plans will mitigate around half of the impact of these higher costs on its profit and it will work on further measures to offset the impact. However, it reflects an improving outlook after Diageo said in February that it was bracing for a 200 million US dollar (£161 million) hit to profits from tariffs. The firm was set to face a significant knock from proposed tariffs on US imports from Canada and Mexico, but was buoyed by an exemption on alcoholic drinks in March. Diageo also stressed on Monday that it will not be affected by tariffs between the US and China. It came as the company launched a 500 million dollar (£375.6 million) cost-saving programme, in order to support further investment and improving its leverage. The London-listed firm, which also makes Gordon's gin and Baileys, said it will shift to 'a more agile global operating model' as it seeks to improve its cash flow. Meanwhile, the company reported that net sales grew by 2.9% to 4.37 billion dollars (£3.28 billion) for the three months to March 31, amid a boost from continued strong Guinness sales. In Europe, sales dipped 1.3% for the quarter as higher Guinness sales were offset 'further softness' in spirits across key markets. Organic spirit sales were weaker year-on-year in the region, despite increased demand for tequila. However, sales in North America grew by 5.9% amid strong shipments of US spirits. Debra Crew, chief executive of Diageo, said: '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 2025. 'We also reiterated our organic operating profit outlook for fiscal 2025, 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.'
Glasgow Times
19-05-2025
- Business
- Glasgow Times
Guinness maker Diageo braces for £113m US tariff impact
The Guinness and Johnnie Walker maker said it would be impacted by a 10% tariff on UK and European imports into the US, after President Donald Trump launched a raft of tariffs last month. It said it believes its current plans will mitigate around half of the impact of these higher costs on its profit and it will work on further measures to offset the impact. However, it reflects an improving outlook after Diageo said in February that it was bracing for a 200 million US dollar (£161 million) hit to profits from tariffs. Diageo owns brands including Gordon's, Baileys and Johnnie Waler (Diageo/PA) The firm was set to face a significant knock from proposed tariffs on US imports from Canada and Mexico, but was buoyed by an exemption on alcoholic drinks in March. Diageo also stressed on Monday that it will not be affected by tariffs between the US and China. It came as the company launched a 500 million dollar (£375.6 million) cost-saving programme, in order to support further investment and improving its leverage. The London-listed firm, which also makes Gordon's gin and Baileys, said it will shift to 'a more agile global operating model' as it seeks to improve its cash flow. Meanwhile, the company reported that net sales grew by 2.9% to 4.37 billion dollars (£3.28 billion) for the three months to March 31, amid a boost from continued strong Guinness sales. In Europe, sales dipped 1.3% for the quarter as higher Guinness sales were offset 'further softness' in spirits across key markets. Organic spirit sales were weaker year-on-year in the region, despite increased demand for tequila. However, sales in North America grew by 5.9% amid strong shipments of US spirits. Debra Crew, chief executive of Diageo, said: '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 2025. 'We also reiterated our organic operating profit outlook for fiscal 2025, 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.'
Western Telegraph
19-05-2025
- Business
- Western Telegraph
Guinness maker Diageo braces for £113m US tariff impact
The Guinness and Johnnie Walker maker said it would be impacted by a 10% tariff on UK and European imports into the US, after President Donald Trump launched a raft of tariffs last month. It said it believes its current plans will mitigate around half of the impact of these higher costs on its profit and it will work on further measures to offset the impact. However, it reflects an improving outlook after Diageo said in February that it was bracing for a 200 million US dollar (£161 million) hit to profits from tariffs. Diageo owns brands including Gordon's, Baileys and Johnnie Waler (Diageo/PA) The firm was set to face a significant knock from proposed tariffs on US imports from Canada and Mexico, but was buoyed by an exemption on alcoholic drinks in March. Diageo also stressed on Monday that it will not be affected by tariffs between the US and China. It came as the company launched a 500 million dollar (£375.6 million) cost-saving programme, in order to support further investment and improving its leverage. The London-listed firm, which also makes Gordon's gin and Baileys, said it will shift to 'a more agile global operating model' as it seeks to improve its cash flow. Meanwhile, the company reported that net sales grew by 2.9% to 4.37 billion dollars (£3.28 billion) for the three months to March 31, amid a boost from continued strong Guinness sales. In Europe, sales dipped 1.3% for the quarter as higher Guinness sales were offset 'further softness' in spirits across key markets. Organic spirit sales were weaker year-on-year in the region, despite increased demand for tequila. However, sales in North America grew by 5.9% amid strong shipments of US spirits. Debra Crew, chief executive of Diageo, said: '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 2025. 'We also reiterated our organic operating profit outlook for fiscal 2025, 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.'
