Quarterly ResultAug 6, 2026, 08:26 AM
Diageo FY26 Reported Net Sales Down 3.0%; Organic Op Profit Up 2.0%
AI Summary
Diageo PLC reported preliminary results for the year ended June 30, 2026, with reported net sales declining 3.0% to $19.6 billion and organic net sales down 2.0%. Reported operating profit decreased 27.2% due to significant restructuring and impairment charges, while organic operating profit grew 2.0%. The company announced a two-year restructuring program with $0.9 billion in charges for fiscal 2026, aiming for $850 million in savings starting fiscal 2027. Free cash flow improved to $3.2 billion, and a full-year dividend of 50 cents per share was recommended.
Key Highlights
- Reported net sales declined 3.0% to $19,643 million.
- Organic net sales declined 2.0%, with volume down 0.4% and unfavorable price/mix 1.6%.
- Reported operating profit declined 27.2% to $3,156 million, impacted by restructuring and impairment charges.
- Organic operating profit increased by 2.0%, with margin up 116bps.
- Reported net profit was $1,958 million, a 22.9% decrease.
- Basic earnings per share before exceptional items increased 0.7% to 165.3 cents.
- Free cash flow increased by $463 million to $3.2 billion.
- Restructuring charges in fiscal 2026 totaled $0.9 billion, with a new operating framework expected to deliver $850 million in savings over two years.
- Impairment charges of $1.5 billion were recorded, mainly related to Türkiye and the Don Papa brand.
- Recommended full year dividend of 50 cents per share, in line with the new policy.
Price Impact
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