Diageo, the world's largest spirits maker, has forecasted flat organic sales growth for 2026 as it expects US tariffs to impact by $200million per year.
The maker of Johnny Walker whisky and Smirnoff vodka previously forecast a $150million per year hit to operating profit from the tariffs.
The company is looking for a new chief executive and finance head to turn around its share performance after it announced plans in May to cut $500million in costs and make substantial sales by 2028.
Organic sales increased 1.7% in fiscal 2025, beating analysts' average forecast of 1.4% in a company poll.
Interim chief executive officer Nik Jhangiani said: "Macroeconomic uncertainty and the resulting pressure on consumers continues to weigh on the spirits sector.
"We recognise the need to drive meaningful growth opportunities in an evolving TBA landscape, and we are sharpening our strategy to accelerate growth."
FTSE 100
The UK's flagship share index, the FTSE 100, was up 96 points at 9,174 shortly after opening this morning.
Brent crude oil futures were up 0.22% at $67.30 a barrel.
Companies reporting today
- Advanced Micro Devices* - Q2 Results
- BP*- Q2 Results
- Diageo* - Full Year Results
- Domino's Pizza - Half Year Results
- Fresnillo - Half Year Results
- International Workplace Group - Half Year Results
- Keller Group - Half Year Results
- Rotork - Half Year Results
- Smith & Nephew* - Half Year Results
- Spirent - Half Year Results
- Travis Perkins - Half Year Results