Diageo Plc · LSE:DGE
Diageo — Investor Day (August 2026)
21 slides from Diageo's investor day presentation, Aug 6, 2026
Slide 1: Financial algorithm: A more competitive Diageo focused on value creation
Financial algorithm: A more competitive Diageo focused on value creation Nik Jhangiani, Chief Financial Officer 6 August 2026
Slide 2: Cautionary statements concerning forward-looking statements and non-GAAP financial measures
Cautionary statements concerning forward-looking statements and non-GAAP financial measures The following presentation contains ‘forward-looking’ statements. These statements can be identified by the fact that they do not relate only to historical or current facts and may generally, but not always,
Slide 3: Cautionary statements concerning forward-looking statements and non-GAAP financial measures
Cautionary statements concerning forward-looking statements and non-GAAP financial measures The following presentation contains ‘forward-looking’ statements. These statements can be identified by the fact that they do not relate only to historical or current facts and may generally, but not always,
Slide 4: Net sales growth to improve, as NAM turns around
Net sales growth to improve, as NAM turns around F27 F28 F29 3-year CAGR Diageo Broadly flat c.1.5% c.2.5% up LSD % NAM Down MSD % Down LSD % Flat Organic sales ROW guidance c.3% to c.5% Market growth expectations (Spirits including RTDs) North America/USA c. -3% c.-3% to c.-1% c.-1% - c.+1% Rest of
Slide 5: We aim to grow gross profit without the need for a rebase
We aim to grow gross profit without the need for a rebase 60%+ Gross margin sustained despite Gross margin F26 Gross profit $ category strategy remaining flat increasing F27 - F29 5
Slide 6: Appropriately invested, A&P will be focused and targeted
Appropriately invested, A&P will be focused and targeted A&P spend, reinvestment rate F25, F26, F27E – F29E, % • F26 A&P reduction largely development 18.1% savings & procurement benefits $3.7bn • Development spend reduced to 15% of A&P in F26, from 21% in F24 16.2% c.16% • Representing c.$300m $3.2
Slide 7: Driving significant savings F27-F29
Driving significant savings F27-F29 Operating framework and supply chain savings F27E, F28E, F29E, $ Supply • Overheads reduced to c.10.5% net sales over 2 years • In line with top quartile FMCG peers Overheads • $1.2bn exceptional costs: • Operating framework c.$1.1bn, c.70% in F26 F27E F28E F29E (
Slide 8: Operating profit growth guidance
Operating profit growth guidance Mid-single-digit Continued focus on organic operating profit driving positive leverage growth resulting in operating margin expansion F27-F29 CAGR 8
Slide 9: FCF focus will drive c.$8bn cumulative FCF over next three years
FCF focus will drive $8bn cumulative FCF over next 3 years Free cash flow F25 – F26, F27E – F29E, $bn 3.2 • F26 benefited from c.$0.3bn 2.7 0.4 2.85 EABL and a c.$0.1bn one-off 2.7 2.8 0.85 related to historical 2.0 tax refunds c.$8bn cumulative FCF after c.$850m • Further opportunities to exception
Slide 10: Disciplined capex supporting priority growth investments
Disciplined capex supporting priority growth investments Annual capex investment F25, F26, F27E – F29E, $ bn 1.5 1.2 1.25 Per annum Sufficient to support: • Investment in increased Guinness capacity • Improvements in digital infrastructure F25 F26 F27 - F29E 10
Slide 11: More competitive: stronger, sustainable shareholder value F27-F29 CAGR
More competitive: stronger, sustainable shareholder value F27-F29 CAGR EPS growth Cumulative FCF Low-single-digit Mid-single-digit ahead of organic c.$8bn organic organic operating profit after exceptional net sales operating profit growth cash costs growth growth (FX neutral) (c.$850m) 11 Note: Abo
Slide 12: Disciplined and clear capital allocation priorities
Disciplined and clear capital allocation priorities Invest for growth Return cash to Selective M&A shareholders Disciplined investment to drive 30-50% dividend payout ratio. Highly selective bolt-on M&A. long-term value creation Increasing current payout Complete focus on organic and/or share buybac
Slide 13: Net debt to EBITDA significantly reduced by F29
Net debt to EBITDA significantly reduced by F29 1,2 Leverage ratio1 F25, F26, F27E - F29E 3.4 • Ahead of interim guidance to be well 3.1 Target leverage range within leverage range no later than c.2.75 fiscal 282 c.2.0 • Significantly improved financial flexibility from fiscal 28 F25 F26 F27E F28E F
Slide 14: Introducing fiscal 27 guidance
Introducing fiscal 27 guidance Broadly flat organic net sales growth (F26: -2.0%) Organic operating profit growth up low to mid-single-digit (F26: +2.0%) Free cash flow c.$2bn (F26: $3.2bn) after exceptionals Leverage ratio at end of fiscal 27 at mid-point of target leverage range1,2 1. Leverage rat
Slide 15: Appendix
Appendix 15
Slide 16: Fiscal 27 technical guidance
Fiscal 27 technical guidance Effective tax rate before exceptional items to be c.25% (F26: 24.3%) Effective interest rate to be c.4% (F26: 3.9%) Capex to be c.$1.25bn (F26: $1.2bn) 16
Slide 17: Change in regional disclosure from fiscal 27
Change in regional disclosure from fiscal 27 From To North America North America Europe Europe, Middle East and Africa Asia Pacific Asia Pacific excluding India Latin America and Caribbean Latin America and Caribbean Africa India 17
Slide 18: Foreign exchange information and expectations
Foreign exchange information and expectations F26 full year net sales value - FX rates F27 foreign exchange update F26 FY Spot at Spot at Average Average Using hedged rates in place and Currency currency as 30 June 30 June actual actual spot rates on 31 July 2026 % of total 2025 2026 FY F25 FY F26 (
Slide 19: Updated impact of tariffs on US imports
Updated impact of tariffs on US imports 1. Estimated guidance for fiscal 27 assumes: - 10% tariff on EU imports - no tariff on UK whisky (July 2026) - 10% tariff on UK imports excluding whisk(e)y 2. Resulting in an estimated impact of c.$100 million before mitigation or any pricing, c.$60 million af
Slide 20: Agreement to sell shareholding in EABL to Asahi and for United Spirits Limited to sell RCB
Agreement to sell shareholding in EABL to Asahi and for United Spirits Limited to sell the Royal Challengers Bangalore cricket team East African Breweries PLC (EABL) - Announcement in December 2025 of sale of 65% shareholding in EABL and shareholding in Kenyan spirits business • Estimated net procee
Slide 21: DIAGEO
DIAGEO