Diageo warns of ongoing cost inflation and challenging market conditions

Guinness-owner says it still expects to deliver high single-digit profit growth this year

Diageo has warned of ongoing cost inflation in its business. Picture: Andres Poveda

Diageo, the British drinks giant that owns Guinness, has said trading conditions remain challenging due to ongoing cost inflation across its business and geopolitical uncertainty in key markets.

In a trading update released ahead of its annual general meeting on Thursday, the London-headquartered drinks company said the business remains on track to deliver on its medium-term targets despite the difficult trading environment. It comes as Diageo’s share price remains under pressure as it has dropped ...