Diageo, the parent company of Guinness and other alcoholic drinks, saw its profits decline by 28% to around £3.2bn in the financial year ending on 30 June 2025.

The profit decrease was driven by a negative impact from foreign exchange as well as restructuring and impairment costs, said the firm.

Diageo’s net sales fell by 0.1% to approximately £15.2bn, due to unfavourable currency exchange, as well as acquisition and disposal adjustments.

Nik Jhangiani, interim chief executive of Diageo, said: “I am pleased to report on our fiscal 25 results, which, in a challenging year, were in line with our guidance.

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“While we are encouraged by areas of progress and the standout performance from Don Julio, Guinness and Crown Royal Blackberry, there is clearly much more to do across our broader portfolio and brands.”

However, net sales in Great Britain increased by 3.5%, driven by double-digit organic net sales growth in Guinness, which was offset by a mid-single-digit decline in the spirits category.

The company is bracing for a £150m impact from tariffs in the upcoming year.

Jhangiani added: “While macroeconomic uncertainty and the resulting pressure on consumers continue to weigh on the spirits sector, we believe in the attractive long-term fundamentals of our industry and in our ability to continue to outperform as the … landscape evolves. We are focused on what we can manage and control and executing at pace.”

Diageo projects a mid-single-digit profit growth in the upcoming year and a net sales growth in line with FY25, due to a “challenging market”.