Diageo scraps medium-term goals as tariffs cloud outlook

Company said it had withdrawn its guidance for medium-term organic net sales growth of between 5% and 7% due to macroeconomic and geopolitical uncertainty

While investors welcomed the removal of targets they regarded as increasingly unrealistic, shares in the world's largest spirits maker dropped 4% in early trade on Tuesday.

Drinks giant Diageo withdrew its ambitious sales growth target on Tuesday, acknowledging a prolonged downturn in demand and uncertainty over US President Donald Trump's tariffs which are forcing the spirits sector to make big adjustments.

While investors welcomed the removal of targets they regarded as increasingly unrealistic, shares in the world's largest spirits maker dropped 4% in early trade on Tuesday. They hit their lowest since 2020, making the company one of the biggest losers on London's FTSE 100.