On-trade

Diageo’s 2025 first half results mark a ‘return to growth’

Growth in four of its five regions was supported by market share gains

Diageo said that it has anticipated and planned for a number of potential scenarios regarding tariffs in recent months

Diageo’s has reported that its fiscal 2025 first half results marked a return to growth, its latest financial results show.

The Guinness-owner delivered organic net sales growth of 1% ‘despite a challenging industry backdrop as consumers continue to navigate through inflationary pressures’.

Market share

Growth in four of its five regions was supported by market share gains, the company noted.

In a statement, Debra Crew, chief executive, Diageo, said: “Notably, in North America, we outperformed the market with high quality share growth and positive organic net sales growth, driven by strong execution and momentum in Don Julio and Crown Royal.

“I’m also particularly proud of the performance of our iconic Guinness brand, which delivered double-digit growth for an eighth consecutive half, supported by brand building expertise, innovation and growing global momentum.”

The drinks giant noted that while the pace of recovery has been slower in several key markets, Diageo remains confident of ‘favourable long-term industry fundamentals’ and in it ability to outperform the market.

“Spirits remains an attractive sector with a long runway for growth, as we expect to continue to gain share within Total Beverage Alcohol (TBA),” she added.

“Additionally, our investments in digital capabilities, supply chain, and our transformational route-to-market changes will all be supportive in driving long term sustainable growth, and I am pleased that we are already seeing early benefits from changes in our US route-to-market transformation”.

Tariffs impact

Diageo said that it has anticipated and planned for a number of potential scenarios regarding tariffs in recent months.

“The confirmation at the weekend of the implementation of tariffs in the US, whilst anticipated, could very well impact this building momentum,” Crew highlighted.

“It also adds further complexity in our ability to provide updated forward guidance given this is a new and dynamic situation.

“We are taking a number of actions to mitigate the impact and disruption to our business that tariffs may cause, and we will also continue to engage with the US administration on the broader impact that this will have on everyone supporting the US hospitality industry, including consumers, employees, distributors, restaurants, bars and other retail outlets.


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