In a trading update, the company stated: “We expect that given the actions that we have in place already, before any pricing, we will be able to mitigate around half of this impact on operating profit on an ongoing basis.”
Back in February, Diageo announced it would take several measures to "mitigate the impact and disruption" of the tariffs, including pricing and promotion management, inventory adjustments, supply chain optimisation, and reallocation of investments.
Additionally, Diageo has launched the first phase of its new Accelerate programme, which is projected to generate $3.1 billion in annual cash flow starting in fiscal 2026. The programme aims to establish clear cash delivery targets and transition the company toward a more agile global operating model, supported by enhanced digital and data capabilities.
