In line with our expectations
| Q1 ended 30 September 2026 | ||||||
| Reported F27 $m | Reported F26 $m | Reported growth YoY % | Organic growth YoY % | Organic growth excl. EABL YoY% | ||
| Net sales | 4,931 | 4,875 | 1.2 | 1.4 | 0.6 | |
| Volume | 1.1 | (0.1) | ||||
| Price/mix | 0.3 | 0.7 | ||||
- Q1 reported net sales increased 1.2% to $4.9bn, with positive organic growth partly offset by unfavourable foreign exchange and the impact of disposals.
- Organic net sales grew 0.6% in Q1 excluding the impact of EABL; volume -0.1% and price/mix +0.7%.
- Regionally Latin America and Caribbean (LAC) and Asia Pacific delivered mid-single-digit growth. India and Europe, Middle East and Africa (EMEA) were up low-single-digit. In North America, organic net sales declined mid-single-digit reflecting continued market softness. In Corporate, EABL delivered double-digit growth, adding 0.8% to group organic net sales.
- Category growth in whisky, Guinness and Smirnoff RTD.
- Fiscal 27 guidance unchanged from CMD.
Sir Dave Lewis, Chief Executive Officer, commented:
“Overall, Q1 was in line with expectations, and we have reiterated our full year guidance. We were pleased with the growth across LAC, EMEA, APAC and India. In North America, we continue to focus on making our offer more competitive, and whilst this remains our biggest challenge, clear actions are underway. Whilst the market remains challenging, and volatility continues given the geopolitical uncertainty and impact of the ongoing conflict in the Middle East on energy, supply and distribution, results in the first quarter represent a small step in the right direction.
Growth in the quarter whilst implementing significant change is testament to the focus and commitment of Diageo colleagues, and I would like to register my sincere thanks for their support.”
Quarterly financials are unaudited. See pages 5-6 for an explanation and reconciliation of non-GAAP measures. Unrounded financials – due to rounding, the numbers in this and other tables in this release may not always cast or calculate exactly. Unless otherwise noted, commentary throughout this release refers to organic net sales movement for first quarter ended 30 September 2026 compared to the first quarter ended 30 September 2025. Prior-year regional financial information has been restated to reflect Diageo’s regional reporting structure effective from fiscal 27, group results are unchanged
Fiscal 27 full-year outlook
Organic net sales – broadly flat organic net sales growth. North America organic net sales expected to decline mid-single-digit assuming the market is down c.3% with improving share performance compared to fiscal 26.
Organic operating profit growth – up low-to mid-single-digit. This includes c.40% of the c.$850 million cost savings from the operating framework changes and c.25% of the c.$150 million cost savings from the supply chain initiatives.
Taxation – tax rate before exceptional items c.25% (F26: 24.3%).
Effective interest rate – effective interest rate c.4.0% (F26: 3.9%).
Capital expenditure – c.$1.25 billion (F26: $1.2 billion).
Free cash flow – c.$2 billion (F26: $3.2bn) after c.$850 million exceptional costs related to operating framework changes and the supply chain savings programme; and excluding cash from EABL.
Leverage – expect to end fiscal 27 around the mid-point of target leverage range (2.5 – 3.0x net debt/adjusted EBITDA) assuming successful completion of the EABL and Royal Challengers Bengaluru transactions.