Diageo reveals 28% profits fall as it prepares for $200m hit from US tariffs

The world's biggest spirits company, Diageo, has revealed a slump in annual profits and expanded its cost-cutting plan as it searches for a new boss after the resignation of its chief executive, Debra Crew.

- Joanna Partridge

The FTSE 100 company, which owns brands including Guinness, Johnnie Walker whisky, Gordon's gin and Smirnoff vodka, reported a nearly 28% fall in operating profit in the 12 months to the end of June, compared with a year earlier.

The drinks maker also upped its target for cost savings from £500m to £625m. The interim CEO, Nik Jhangiani, said the savings were "not about job cuts", adding that while some roles would go, the overall workforce could still increase.

The figures come weeks after the surprise announcement that the group had begun the hunt for a successor to Crew, who it said had stepped down "by mutual agreement" after a period of investor disquiet over its declining share price.