{"id":15821,"date":"2025-02-04T07:47:10","date_gmt":"2025-02-04T07:47:10","guid":{"rendered":"https:\/\/financialrush.com\/?p=15821"},"modified":"2025-02-04T07:47:10","modified_gmt":"2025-02-04T07:47:10","slug":"diageo-scraps-growth-guidance-as-us-tariff-threat-dents-outlook","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=15821","title":{"rendered":"Diageo scraps growth guidance as US tariff threat dents outlook"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=7e7f2f1b-6d21-4929-85bf-4e5fc6ac30f0\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Drinks maker Diageo has scrapped its medium-term sales guidance, blaming the uncertainty over US tariffs and weak demand in key markets, as the company comes under pressure from investors to improve performance. <\/p>\n<p>The London-listed maker of Don Julio tequila, Guinness and Johnnie Walker whisky said sales in the six months to the end of December fell 0.6 per cent to $10.9bn. Organic operating profit declined less than expected by 1.2 per cent to $42mn.<\/p>\n<p>The volume of drinks it sold during the period dropped 0.2 per cent as consumers cut back.\u00a0<\/p>\n<p><a href=\"https:\/\/www.ft.com\/stream\/5d53cf0f-df39-4808-a8c1-25492d9b87ae\" data-trackable=\"link\">Diageo<\/a>\u2019s share price has fallen about a fifth in the past 12 months as investors have grown weary of the company\u2019s poor performance. <\/p>\n<p>Some shareholders have lost confidence in management since chief executive Debra Crew issued a shock profit warning in late 2023 following a sales slump in Latin America. <\/p>\n<p>The industry\u2019s long-term growth prospects have also faced scepticism. Demand for spirits in the category\u2019s US market has faltered, prompting concerns that a trend for moderation among health-conscious consumers and the proliferation of weight-loss drugs and cannabis will dent demand.<\/p>\n<p>US President Donald Trump\u2019s threat of 25 per cent tariffs on US imports from Mexico and <a href=\"https:\/\/www.ft.com\/canada\" data-trackable=\"link\">Canada<\/a> presents another challenge. Diageo is the spirits group most exposed if the US goes ahead with the levies.<\/p>\n<p>Diageo said the prospect of tariffs \u201cadds further complexity in our ability to provide updated forward guidance given this is a new and dynamic situation\u201d.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/7e7f2f1b-6d21-4929-85bf-4e5fc6ac30f0\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this&hellip;\n","protected":false},"author":6,"featured_media":15822,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-15821","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/15821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15821"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/15821\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/15822"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}