The Johnnie Walker owner pointed to "exceptional impairment and restructuring costs, unfavourable foreign exchange and a decline in organic operating margin" as drivers for the decline. 

The report also outlined an increase in the group's cost savings target as interim chief executive Nik Jhangiani said: “Our Accelerate programme is progressing well and is central to creating a more agile operating model. As such, I am pleased to announce that we are increasing our cost savings target by c.$125 million, to c.$625 million over the next three years.”

The cost-saving measures come alongside the message of “considerable contingency planning” surrounding global tariffs, which are predicted to impact the company by $200 million each year.

The group did state however, that it has a “long track record of managing international tariffs gives us confidence in our ability to navigate this successfully”.

While profits were in decline for fiscal 2025, sales figures painted a more optimistic picture, growing by 1.7% thanks to strong performances from Don Julio, Crown Royal and Guinness.

On the results, Jhangiani commented: “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.

“While macroeconomic uncertainty and the resulting pressure on consumers continues 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 TBA landscape evolves.

“We are focused on what we can manage and control and executing at pace. The Board and management are committed to delivering improved financial performance and stronger shareholder returns on a sustained basis.”

Interim chief executive Jhangiani is heading up Diageo following the resignation of Debra Crew in July.