DIAGEO (DEO) Company Report

Diageo reported flat organic net sales growth for the first quarter ended September 30, 2025, with volume increasing by 2.9% offset by a negative price/mix of 2.8%. Reported net sales for the quarter declined 2.2% to $4.9 billion.
The flat organic net sales growth was primarily due to solid growth in Europe, Latin America and Caribbean (LAC), and Africa, which was offset by weakness in Chinese white spirits (CWS) and a softer US consumer environment. Weakness in CWS in China negatively impacted group net sales by approximately 2.5%.
For fiscal 2026, Diageo updated its guidance, expecting organic net sales growth to be flat to slightly down and organic operating profit growth to be low to mid-single digit. The company is committed to delivering approximately $3 billion in free cash flow for fiscal 2026.
The "Accelerate" program is progressing well, with $625 million in cost savings expected over the next three years.

Nov 6, 2025, 11:11 AM

Diageo Reports Flat Q1 2026 Organic Net Sales and Updates Fiscal 2026 Guidance

DEO

Guidance Update

Demand Weakening

Earnings

Diageo reported flat organic net sales in Q1 2026, with strong growth in Europe, LAC, and Africa offset by weakness in Chinese white spirits and North America.
Organic net sales in North America declined 2.7%, primarily due to a 4.1% drop in U.S. spirits, while Chinese white spirits led to a 7.5% decline in APAC.
The company updated its fiscal 2026 guidance, now expecting organic net sales growth to be flat to slightly down and organic operating profit growth in the low to mid-single-digit range.
Diageo anticipates delivering approximately 40% of its $625 million Accelerate program savings in fiscal 2026 and maintains its free cash flow expectation of circa $3 billion.

Nov 6, 2025, 9:30 AM

Diageo Reports Flat Q1 2026 Organic Net Sales and Updates Fiscal 2026 Guidance

DEO

Earnings

Guidance Update

Demand Weakening

Diageo reported flat organic net sales for Q1 2026, as strong growth in Europe, LAC, and Africa was offset by weakness in Chinese white spirits and North America.
The company revised its fiscal 2026 guidance, now anticipating organic net sales growth to be flat to slightly down and organic operating profit growth in the low to mid-single-digit range.
In North America, organic net sales declined 2.7%, with US spirits down 4.1%, attributed to a weaker consumer environment and heightened competition in the tequila category.
Diageo's "Accelerate" program is ahead of schedule, with approximately 40% of the $625 million savings commitment now expected to be delivered in fiscal 2026.

Nov 6, 2025, 9:30 AM

Diageo Reports Flat Q1 2026 Organic Net Sales and Updates FY26 Guidance

DEO

Earnings

Guidance Update

Demand Weakening

Diageo reported flat organic net sales for Q1 2026, with reported net sales of $4.9 billion, a 2.2% decrease year-over-year.
The company updated its fiscal 2026 guidance, now projecting organic net sales growth to be flat to slightly down and organic operating profit growth in the low to mid-single-digit range.
Performance was negatively affected by weakness in Chinese white spirits and a softer U.S. spirits market, leading to a 2.7% organic net sales decline in North America.
Strong organic net sales growth was achieved in Europe (3.5%), LAC (10.9%), and Africa (8.9%).
The "Accelerate" program is on track, with approximately 40% of the $625 million savings commitment expected in fiscal 2026, reinforcing the $3 billion free cash flow guidance.

Nov 6, 2025, 9:30 AM

Earnings Transcripts

Quarterly earnings call transcripts for DIAGEO.

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