Profits at Guinness parent, Diageo, tumbled almost 30 per cent as the embattled spirits company reckons with a global downturn in alcohol consumption.
The maker Johnnie Walker whisky said on Tuesday that its operating profit declined 27.8 per cent to $4.3 billion (€3.7 billion), compared to analyst estimates of a drop of 10 per cent, on the back of “exceptional impairment and restructuring costs”.
Sales in the 12 months to the end of June fell 0.1 per cent to $20.2 billion. Diageo’s organic sales volumes rose 0.9 per cent.
Diageo last month replaced chief executive Debra Crew with chief financial officer Nik Jhangiani on an interim basis. Mr Jhangiani said while he was “encouraged by areas of progress”, “there is clearly much more to do across our broader portfolio and brands”.
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The company said it expects muted sales growth in this fiscal year.
The world’s biggest spirits maker is looking for a new chief and finance head to turn around its financial and share performance, and guide it through a plan announced in May to cut $500 million in costs and make substantial asset sales by 2028.
Diageo said it expects organic sales to fall slightly in the first half of 2026, with growth more weighted towards the second half.
The board of Diageo is moving quickly to find a permanent chief executive officer and will likely make a decision by the end of October, Mr Jhangiani said on a media call. Former chief executive, Debra Crew, stepped down last month after two years in the role. – Copyright The Financial Times Limited 2025 / Reuters / Bloomberg
