Diageo to make significant costs cuts

Sober consumers and rising import tariffs are making things difficult for beverage group Diageo: its CEO will therefore significantly intensify its cost-saving plans.

Popular Guinness

The producer of brands including Baileys, Guinness, Johnnie Walker and Smirnoff has just announced the preliminary figures for the fiscal year that ended on 30 June. Despite a slight organic revenue growth of 1.7 % to 20.2 billion dollars (17.5 billion euros), net profit plummeted by nearly 40 % due to one-time costs. Operating profit excluding one-time items fell by just under 0.7 %.