Diageo's profit slump deepens amid tariff blow, CEO exit

Diageo’s profit slump has raised red flags across the global beverage industry, as the spirits giant reported a staggering 28% drop in operating profit for the year ending June.

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This sharp decline comes alongside the resignation of CEO Debra Crew, adding further uncertainty to a company already grappling with U.S. tariffs and shifting consumer habits.

Nik Jhangiani, now interim CEO, described the year as “challenging,” but highlighted strong performances from Guinness, Don Julio tequila, and Crown Royal Blackberry.

Despite these bright spots, the broader brand portfolio continues to struggle.

The company warned of a $200 million annual hit due to U.S. tariffs on UK-imported drinks—measures that kicked in on June 30 following a UK-US trade agreement.

Jhangiani said Diageo is “focused on what we can control,” including contingency plans like inventory management and supply chain optimization.

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With shares down over 25% this year, Diageo has become the third-worst performer on the FTSE 100—another sign of how tough the spirits market has become amid inflation and changing drinking trends.