Business
Interim Results
Diageo PLC reported interim results for the six months ended December 31, 2025, with net sales of $10.46 billion, a 4.0% decrease, and organic net sales down 2.8% due to volume decline and negative price/mix, primarily impacted by weakness in North America and China. Operating profit was $3.116 billion, down 1.2%, with an adjusted operating profit margin of 31.1%, a slight 1bps increase. Basic earnings per share before exceptional items were 95.3 cents, down 2.5%. Net cash flow from operating activities decreased by $202 million to $2.1 billion, and free cash flow fell to $1.5 billion. The company declared an interim dividend of 20 cents and is targeting a 30-50% payout policy going forward with a minimum floor of 50 cents per annum. Diageo updated its fiscal year 2026 guidance, now expecting organic net sales down 2-3% and organic operating profit growth flat to up low-single-digit. Disclaimer*
About this update from Diageo Plc
[{"type":"text","content":"\n\nThis announcement contains inside information\nInterim results\n\n\n\n\nSix months ended 31 December 2025\n\n\n25 February 2026\n\n\n\n\n \n \n \n\n\nReported results\n\n\n \n\n\nAdjusted results(1)\n\n\n\n\n\n\n\n\nF26 H1\n\n\nvs F25 H1\n\n\n \n\n\nF26 H1\n\n\nvs F25 H1\n\n\n\n\nNet sales\n\n\n$10,460m\n\n\n(4.0)%\n\n\nOrganic net sales movement\n\n\n$(295)m\n\n\n(2.8)%(2)\n\n\n\n\nOperating profit\n\n\n$3,116m\n\n\n(1.2)%\n\n\nOperating profit before exceptional items\n\n\n$3,256m\n\n\n(2.8)%(2)\n\n\n\n\nOperating profit margin\n\n\n29.8%\n\n\n85bps\n\n\nOperating profit margin before exceptional items\n\n\n31.1%\n\n\n1bps(2)\n\n\n\n\nNet profit\n\n\n$2,110m\n\n\n1.7%\n\n\n \n\n\n \n\n\n \n\n\n\n\nBasic earnings per share\n\n\n89.7c\n\n\n3.0%\n\n\nBasic earnings per share before exceptional items\n\n\n95.3c\n\n\n(2.5)%\n\n\n\n\nNet cash flow from operating activities\n\n\n$2,123m\n\n\n$(202)m\n\n\nFree cash flow\n\n\n$1,532m\n\n\n$(164)m\n\n\n\n\nGrowth in Europe, LAC and Africa offset by weakness in North America and China\n• Reported net sales of $10.5 billion declined 4.0% due to organic net sales decline and the negative impact of disposals.\n• Organic net sales declined 2.8%, driven by organic volume down 0.9% and negative price/mix of 1.9%. Strong organic net sales growth in Europe, Latin America and Caribbean (LAC) and Africa was more than offset by softer performance in North America given pressure on disposable income impacting US Spirits, and the adverse impact of Chinese white spirits (CWS) in Asia Pacific.\n• Negative price/mix primarily as a result of adverse mix due to US Spirits performance and weaker results in CWS.\n• Excluding CWS, organic net sales for the group would have been c.2% higher; with volume down c.0.5% and price/mix broadly flat.\nOperating profit decline mainly from adverse mix and tariffs, partially offset by efficiencies in A&P investment\n• Reported operating profit declined 1.2% due to organic operating profit decline and lower exceptional operating charges. Reported operating profit margin grew 85bps, primarily due to the positive impact of disposals.\n• Organic operating profit declined by 2.8%; organic operating profit margin was broadly flat, mainly due to adverse market mix and tariff costs offset by low...