Diageo Plc’s shares surged the most in nearly five years after the drinks maker said it expects to maintain sales growth this year and announced more cost cuts after the sudden exit of its chief executive officer.

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.

Diageo, the world's biggest spirits maker, on Tuesday forecast flat fiscal 2026 sales as it raised its estimate of the impact from U.S. tariffs to $200 million per year, and hiked its cost-savings target by about $125 million.