Johnnie Walker owner Diageo says that Trump tariffs could achieve profits by $ 150 million | Diageo

Diageo, the beverage business behind Guinness and Johnnie Walker Whiskey, said Donald Trump's tariffs could make his profit by USD 150 million (112 million GBP) every year, even though it assumes that he can pillow about half of the expected blow.

The FTSE 100 group, which sells alcoholic drinks such as tequila, gin and whiskey, is one of the many companies that have been hit by Trump's 10% tariff for Great Britain and European imports.

The company announced on Monday in an update that its “long track record of the administration of international tariffs” gave confidence in the new regime. In addition to a promise to reduce the costs for around 500 million US dollars over the next three years, as part of a wider program to improve its efficiency.

In February, the company estimated that new trade restrictions in the last four months of the financial year could lead to a reduction in the profit by $ 200 million.

However, the plans to cut costs increase the prospect of jobs in the shop, which works in 180 countries and employs more than 30,000 employees around the world.

Aarin Chiekrie, a stock analyst at the broker Hargreaves Lansdown, said that Diageo could also rely on price increases to compensate for the effects of tariffs. “But that will take a little time to enact,” he added. “When the picture goes out, the picture looks better than for some time.

“The sales to China are some weak numbers of tariffs, Latin America and the Caribbean, and there are early signs that the industry recovers from its cyclical hangover.”

Diageo, which also has Smirnoff Vodka and Tanqueray Gin, recorded sales growth of 5.9%in the third quarter of the year that ended in March, better as a forecast, as a wholesaler in the United States, which were prepared before the expected tariffs.

Debra Crew, the managing director of Diageo, said that the company had “driven the recent pressure on the beverage industry as” largely macroeconomically powered, with the continued uncertainty influenced both timing and the pace of recovery “.

At the beginning of this year, Diageo scrapped his medium -term sales destination, as it dealt with poor growth and the prospect of tariffs in the USA, the largest market. The previous sales destination was determined by Crew's predecessor, the late Ivan Menezes, in 2021.

Last year, the crew appointed a new head of finance, Nik Jhangiani, an experienced executive that was discontinued from the filling company Coca-Cola Enterprises.

Diageo's shares rose by up to 2.6%on Monday. However, the ongoing uncertainties about tariffs have led to the shares struggling this year and has dropped by around 13% since January.