Trevor Stirling

Trevor Stirling from Bernstein asked for specifics on the US route-to-market transformation and questioned what management sees as the next major global growth brand for Diageo.

Answer

Interim CEO & Director Nik Jhangiani described the US route-to-market changes as adding incremental, upskilled sales resources focused on helping distribution partners drive shopper execution. Regarding the next growth engine, he stated the focus is on unlocking potential across the entire portfolio—including malts and tequila—rather than relying on a single brand, with a sharpened strategy to be shared later.

Trevor Stirling asked a big-picture question about whether the trend of younger consumers drinking less alcohol, observed in the U.S., is also emerging in key developing markets like Mexico, Brazil, and Colombia.

Answer

CEO Michel Doukeris acknowledged that participation among the youngest cohorts is slightly lower globally, partly due to a delayed social start for the 'COVID generation,' but he sees behavior normalizing as they age. He also noted stronger participation among older cohorts and emphasized that the 'balanced choices' portfolio, including non-alcoholic options, is designed to resonate with these evolving consumer trends.

Trevor Stirling asked about the key factors that would determine performance at the high or low end of the 4-8% organic EBITDA growth guidance for 2025. He also sought to confirm the key drivers for 2025 cash flow, including EBITDA growth, lower interest, and neutral working capital.

Answer

CEO Michel Doukeris stated it was too early to specify factors for the guidance range but expressed confidence in delivering within it, citing a consistent track record. CFO Fernando Tennenbaum confirmed the cash flow drivers, noting that organic EBITDA growth, a more normalized working capital cycle, and a stable outlook for other items should continue to generate strong cash flow.

Trevor Stirling from Bernstein asked for an update on Bud Light's performance in the U.S., noting it seemed unresponsive to investment. He also asked what factors could push second-half EBITDA growth to the high or low end of the guidance range.

Answer

CEO Michel Doukeris stated that Bud Light's performance is stabilizing, with improving brand health indicators, and noted that key marketing activations are concentrated in the second half with the NFL season. CFO Fernando Tennenbaum listed H2 factors as continued momentum in LatAm and Africa, potential FX headwinds, and a heavier Q3 marketing spend for the 'summer of sports,' which could affect quarterly phasing but not the full-year outlook.