Diageo cuts full-year sales and profit forecast

Diageo Revises Full-Year Sales and Profit Forecast

Diageo announced a reduction in its sales and profit forecasts for the full year due to challenges in the Chinese white spirits market and softer demand in North America. The company now anticipates its 2026 organic net sales to remain flat or decline slightly.

Factors Affecting Forecast

Profit Expectations

Organic operating profit growth for 2026 is projected to be in the low to mid-single-digit range.

First Quarter Performance

In Q1, Diageo reported flat organic net sales. Organic volume increased by 2.9%, but this was offset by a negative price/mix effect of 2.8%, mainly due to an unfavorable mix in Asia Pacific linked to weak results in Chinese white spirits.

Excluding the impact from Chinese white spirits, price/mix would have been relatively stable.

Interim CEO's Statement

“Net sales were flat organically in Q1, with growth in Europe, LAC and Africa offset by weakness in Chinese white spirits and a softer US consumer environment than planned for.

We are not satisfied with our current performance and are focused on what we can manage and control; acting with speed to drive efficiencies, prioritising investment and adapting more quickly to an evolving consumer environment.

We are well advanced in sharpening our strategy, and we are developing and already implementing clear plans to drive growth across the broader portfolio, ensuring that we meet relevant consumer occasions of the future.”

Summary: Diageo faces headwinds in key markets and is responding with strategic adjustments to navigate changing consumer behaviors while aiming to stabilize growth.

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Sharecast Sharecast — 2025-11-06

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