The world’s largest alcoholic drinks company, Diageo, reported a drop in annual profits and reiterated that it expected an annual hit of $200 million from Donald Trump’s tariffs.

According to the Guardian, the British company, which owns brands including Guinness, Johnnie Walker whisky, Gordon’s gin and Smirnoff vodka, on August 5 reported a nearly 28% fall in operating profit in the 12 months to the end of June, compared with a year earlier. It said it had expanded its cost-cutting plan, as it is searching for a new boss after the resignation of the chief executive, Debra Crew.

The tariff figure – first floated in February – assumes there are no further changes to rates on imports into the U.S., meaning the 10% levy remains on U.K. drink, along with the 15% on products exported from the EU, while Mexican and Canadian spirits remain exempt.

Diageo said it had been working to mitigate the impact of tariffs, carrying out work including “inventory management, supply chain optimization and reallocation of investments.”

As a result, the company believes it will be able to mitigate about half of the impact of tariffs on its operating profit.

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The drinks maker also upped its target for cost savings from £500 million ($664 million) to £625 million. The interim CEO, Nik Jhangiani, said the savings were “not about job cuts,” adding that while some roles would go, the overall workforce could still increase.