Diageo Anticipates Continued Strong Market Share In 2025, But Tariff Impact Remains A Key Watchpoint

Author: Benzinga Newsdesk | February 04, 2025 03:52am

Fiscal 25 outlook
Organic net sales growth
In the second half of fiscal 25, before the impact of the tariffs, we would have expected to build on the momentum seen in the
first half and would have expected to deliver a sequential improvement in organic net sales growth compared with the first half
of fiscal 25. The confirmation at the weekend of the implementation of tariffs in the US could however impact this building
momentum. We still expect to continue to deliver strong market share performance.
Organic operating profit growth
Before taking into consideration the potential impact of tariffs we had expected a slight decline in organic operating profit in the
second half of fiscal 25 compared with the prior year, broadly in line with the decline in the first half, reflecting higher staff costs
(given lower incentive comparatives in the same period last year), and continued strategic investments including in digital and
US route-to-market. Clearly the implementation of tariffs could further impact this and when we can more accurately assess the
impact we will update as appropriate.

Posted In: DEO