Diageo has reported a return to growth in its first half fiscal results for 2025, Drinks Industry Ireland reported this week.
The Guinness-owner reported organic net sales growth of 1% despite a challenging industry backdrop.
Consumers have continued to contend with inflation and cost-of-living pressures, while Diageo itself recently withdrew its medium-term goals following the announcement that the US was to impose tariffs on Canada and Mexico.
Diageo said, however, that it had anticipated and planned for a number of potential scenarios regarding tariffs in recent months.
Despite challenges, the company reported that market share gains were responsible for growth in four of its five regions.
The company also noted that although the pace of recovery has been slower in several key markets, it remains confident in its ability to perform.
‘Strong Execution And Momentum’
In a statement, CEO of Diageo Debra Crew 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 label momentum.
“Spirits remains an attractive sector with a long runway for growth, as we expect to continue to gain share within Total Beverage Alcohol (TBA).
“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.
“The confirmation at the weekend of the implementation of tariffs in the US, whilst anticipated, could very well impact this building momentum.
“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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