Overview

• Diageo now projects an annual profit impact of $150 million from 10% US tariffs on UK and EU imports, down from an earlier $200 million estimate.
• The company has initiated a three-year, $500 million cost-saving program under its Accelerate initiative to improve efficiency and free cash flow.
• Mitigation actions, excluding potential price increases, are expected to offset approximately half of the tariff's impact on operating profit.
• In the third quarter, Diageo reported 2.9% organic net sales growth, with strong performance from Guinness and tequila restocking in North America.
• CEO Debra Crew stated that potential US price hikes are being considered to further protect profit margins and sustain financial stability.