Diageo, which has come under pressure from investors to cut costs and reduce debt, also said it was adding $125mn to its cost-savings target, taking the total to $625mn over the next three years. Its shares rose 7 per cent in early trading before paring most of those gains. They closed up 3.77 per cent.

The company’s cost-saving effort involves some job cuts as it navigates trade disputes and a slowdown in alcohol consumption.

Diageo is now looking to achieve around $625m in cost savings in the next three years as part of the drinks giant's bid to bolster growth. The change marks a $125m increase from the original $500 in cost-savings plan laid out through Diageo's 'Accelerate' initiative in May.