Diageo’s half-year profits and net sales have dipped as CEO Debra Crew blamed a “challenging industry backdrop”.

In the six months ending 31 December, the alcohol giant experienced a reported operating profits drop of 4.9% to £2.54bn ($3.155bn), while organic operating profit fell by £33m ($42m) or 1.2%.

Global net sales also declined 0.6% in the 6 months, with the business citing a negative impact from acquisitions and disposals, such as the offloading of the Pampero and Safari brands earlier this year.

This was partially offset by a slight growth in organic net sales growth of 1% which chief financial officer Nik Jhangiani said was driven by price mix.

Elsewhere in the UK, however, Diageo fared better with net sales up 2%, bolstered by a strong Guinness performance, despite this year’s temporary supply constraints over the festive period.

Star brand Guinness gained category share in both the on-trade and off-trade, supported by events such as the English Premier League partnership and distribution gains on non-alcohol option Guinness 0.0.

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However, this UK success was slightly dampened by a 6% spirits decline in net sales which Diageo blamed on an “overall category weakness”.

Looking ahead, noting the potential impact of impending North American tariffs and other geopolitical uncertainty, Diageo also said it was axing its medium term guidance of 5-7% growth.

However, chief executive Crew remained positive, hailing the results as a “return to growth”, despite inflationary pressures, adding: “While the pace of recovery has been slower in several key markets, we remain confident of favourable long-term industry fundamentals and more importantly in our ability to outperform the market.”

“I’m also particularly proud of the performance of our iconic Guinness brand, which delivered double-digit growth for an eighth consecutive half, supported by brand building expertise, innovation and growing global momentum,” she added.

The results follow a turbulent year for the London listed alcohol manufacturer. Last year Crew faced pressure as shares hit a seven year low, with analysts warning investors might “push for new leadership”.

Last month, Diageo fought off rumours it was to sell of its market-leading stout brand Guinness, a deal that was thought to be worth more than £8bn.