Drinks maker Diageo has abandoned its long-term sales growth target, citing uncertainty surrounding US tariffs and subdued demand in key markets. The company, facing investor pressure for improved performance, reported a 0.6% decline in sales for the six months to December and a 1.2% drop in organic operating profit. Diageo CEO Debra Crew acknowledged the complexities of providing guidance in the face of evolving trade tensions and lingering pressure from investors stemming from a profit warning issued in late 2023.
Drinks maker Diageo has scrapped its long-standing sales growth guidance, blaming the uncertainty over US tariffs and weak demand in key markets, as the company comes under pressure from investors to improve performance.
The decision to ditch its 5 to 7 per cent target for medium-term organic sales growth came as the company faces uncertainty over the impact of a global trade war. US President Donald Trump on Monday pulled back from imposing 25 per cent tariffs on US imports from Mexico and Canada, giving the countries a 30-day reprieve. Diageo is the spirits group most exposed if the US goes ahead with the levies.
TARIFFS DEMAND INVESTORS Diageo SALES GROWTH
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