Diageo Targets $1B Savings; FY27 Sales Flat, Profit Up Low-Mid Single-Digit

Diageo PLC held a Capital Markets Day to detail its strategy for sustainable value creation, announcing plans to achieve approximately $1 billion in savings over the next three years from operating framework redesign and supply chain initiatives. For fiscal 2027, the company expects broadly flat organic net sales growth, with North America sales down mid-single-digit, and organic operating profit growth up low-to mid-single-digit. Over the medium term (fiscal 2027-2029), Diageo projects low-single-digit organic net sales growth and mid-single-digit organic operating profit growth, with cumulative free cash flow of approximately $8 billion.