Diageo Reports $19.6 Billion Sales as Operating Profit Falls 27.2%
Updated
Updated · Diageo · Aug 6
Diageo Reports $19.6 Billion Sales as Operating Profit Falls 27.2%
3 articles · Updated · Diageo · Aug 6
Summary
$19.6 billion in net sales and $3.16 billion in operating profit marked a weak fiscal 2026, with sales down 3.0% and reported operating profit down 27.2%.
A 2.0% organic sales decline, disposals, and weakness in North America and Asia Pacific drove the drop, while volume slipped 0.4% and price/mix turned negative.
$0.9 billion of restructuring charges and $1.5 billion of impairments—largely tied to Türkiye and the Don Papa brand—hit reported profit, even as operating profit before exceptional items rose 2.0%.
$3.2 billion in free cash flow, up $463 million, helped keep net debt at $20.5 billion and leverage at 3.1 times EBITDA, while Diageo held its full-year dividend at 50 cents.
The results underpin Dave Lewis's turnaround, including a two-year restructuring program expected to deliver about $850 million in savings from fiscal 2027 after the broader $1 billion cost-cutting plan unveiled earlier.