Diageo 2026 Preliminary Results: Organic sales dip while margins improve on cost savings
Diageo’s 2026 preliminary results for the year ended 30 June show net sales of $19.643 billion, down 3% on a reported basis and 2% organically. Organic net sales fell 2% with volume down 0.4% and a 1.6% adverse price/mix, though growth occurred in Europe, Latin America and Africa while North America and Asia Pacific weakened. Organic operating profit rose 2% with margins up 116 basis points thanks to cost savings, but the reported figure declined 27.2% due to restructuring costs and impairment charges; EPS before exceptional items was 165.3 cents. Free cash flow rose to $3.211 billion, and net debt stood at $20.5 billion. The company is progressing with disposals (East Africa Breweries) and a planned sale of the RCB cricket team, maintaining a 50 cents per share dividend. A two-year restructuring program is underway, with $0.9 billion of charges in fiscal 2026 and expected $850 million in savings from fiscal 2027, plus $1.5 billion of impairments largely from Türkiye. CEO Dave Lewis says progress in several regions supports the turnaround as the Capital Markets Day is underway.
