0754 GMT - While Diageo isn't out of the woods yet, the U.K. booze giant's update showed some signs of hope, lifting its shares by over 1% in morning trading while the overall market dips, Interactive Investor says in a market comment. Diageo estimates that tariffs will result in a $150 million annual hit to profit, half of which it expects to be able to mitigate. Meanwhile, the company launched a program to strengthen its operating model, boost its free cash flow and deliver cost savings. "The developments over the last year have taken the sheen from a stock traditionally regarded as a core portfolio constituent, despite the group's sprawling geographical footprint and portfolio of famous brands," Richard Hunter writes. Shares have shed 14% year to date, a decline which is stabilizing but still reflects the challenges ahead. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

May 19, 2025 03:54 ET (07:54 GMT)

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