Guinness maker Diageo is to extend cost saving plans after revealing a slump in profits following a “challenging year” which saw its former boss leave.

It came as the group, which also makes Johnnie Walker whisky and Gordon’s gin, saw net sales edge marginally lower amid weaker consumer demand for some spirits as younger people continue to moderate drinking habits.

The London-listed spirits giant said it is seeking to secure £625 million in cost savings, increasing from a previous target of £500 million savings.

Nik Jhangiani, interim boss of the firm, said the savings plan is “not about job cuts” but added that “there will be some” as a result. He stressed that the group could still increase its overall workforce.

Diageo owns brands including Johnnie Walker, Baileys and Gordon’s gin (

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