Diageo's latest interim results highlight a 4.9% decline in operating profit, driven by unfavorable foreign exchange rates and shrinking organic margins. The finance chief has warned of an additional $200 million hit due to potential U.S. tariffs on Mexico and Canada, foreseeing a further 6% profit fall. Consequently, prices for Diageo's beloved drinks may rise, having already increased by 8% within a year. Analysts emphasize that inflation and production issues contribute to already climbing costs, making tariff impacts felt across various brands under Diageo's umbrella.
This morning, Diageo, which owns Guinness, released its half-year interim results, in which it reported operating profit declined 4.9% and reported operating profit margin declined 1.32%.
Diageo estimates operating profit could be dented by roughly $200 million if U.S. tariffs on Mexico and Canada are implemented in March, suggesting a potential fall of around 6%.
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