Diageo H1 Results Down, H2 To Reflect US Tariffs; Withdraws Mid-term View

(RTTNews) - Diageo plc (DGE.L), a provider of alcoholic beverages, reported Tuesday that its first-half profit attributable to parent company's shareholders dropped 12 percent to $1.94 billion from prior year's $2.21 billion.

Basic earnings per share were 87.1 cents, down 12 percent from 98.6 cents last year.

Basic earnings per share before exceptional items cents were 97.7 cents, compared to 108.1 cents a year ago.

Operating profit dropped 5 percent year-over-year to $3.16 billion.

Net sales also were 1 percent lower at $10.90 billion, compared to $10.96 billion a year ago. Organic net sales returned to growth and increased 1 percent, driven by positive price/mix, partially offset by a 0.2 percent volume decline.

Volume dropped 1 percent to 122.8 EUm from 124.6 EUm a year ago.

Further, the company said an interim dividend of 40.50 cents per share, same as last year, will be paid to holders of ordinary shares and US ADRs on register as of February 28.

Looking ahead, the company said its second-half outlook will reflect the confirmation at the weekend of the implementation of tariffs in the US.

Before the impact of the tariffs, Diageo said it would have expected to build on the momentum seen in the first half and would have expected to deliver a sequential improvement in organic net sales growth compared with the first half of fiscal 25.

Also, before the tariffs, the company had expected a slight decline in organic operating profit in the second half of fiscal 25 compared with the prior year, broadly in line with the decline in the first half.

The company still expects to continue to deliver strong market share performance.

Regarding the medium-term, Diageo said the guidance of 5-7 percent organic net sales growth has been removed due to the current macroeconomic and geopolitical uncertainty in many of its key markets impacting the pace of recovery.

The company will provide more regular near-term guidance and trading updates in the interim instead.

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