Diageo Plc · LSE:DGE
Diageo — FY2025 Earnings Presentation
40 slides from Diageo's earnings presentation, Aug 5, 2025
Slide 1: Preliminary Results Fiscal 25
DIAGEO Preliminary Results Fiscal 25 Nik Jhangiani, Interim CEO Sonya Ghobrial, Global Head of Investor Relations 5 AUGUST 2025
Slide 2: Cautionary statements concerning forward-looking statements and non-GAAP financial measures
DIAGEO Cautionary statements concerning forward-looking statements and non-GAAP financial measures The following presentation contains forwarcHooking’ 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 alw
Slide 3: Results in line with guidance in a challenging year
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH DIAGEO Results in line with guidance in a challenging year Update on reshaped priorities and focus: sharpening our strategy to drive accelerated growth Accelerate progressing at pace, creating a more agile and performance focused organisation Focus
Slide 4: F25 full year key performance metrics
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH F25 full year key performance metrics Organic net sales “ny +1.7% Excluding Ciroc transaction +1.5% ! Organic operating profit Ny, -0.7% Excluding Ciroc transaction -1.0% ! Free cash flow $2.7on ay +$0.1on Pre-exceptional EPS 1 64 e Qcents \ -8.6% D
Slide 5: Reiterate reshaped priorities and focus
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Reiterate reshaped priorities and focus: sharpening our strategy to drive accelerated growth r sustainable Increase Maximise Optimise line growth operating leverage free cash flow returns ; Re-cut productivity V Drive volume growth programme Returns
Slide 6: Commercial excellence focus to drive sustainable top line growth
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Commercial excellence focus to drive sustainable top line growth Establishing Diageo as the partner of choice Trade investment optimisation driving growth through efficient spend Optimising outlet activation segmentation, activation linked to strate
Slide 7: Accelerate: to deliver sustainable consistent performance, first phase underway
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Accelerate: to deliver sustainable consistent performance, first phase underway Consistent cash delivery c.$3bn free cash flow from fiscal 26, increasing as business performance improves DIAGEO 7 | Preliminary Results Fiscal 25 Operating model Cost
Slide 8: Accelerate: evolving to a more agile global operating model
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Operating model Accelerate: evolving to a more agile global operating model Diageo operating model principles * Leveraging scale for competitive advantage * Maintain local consumer and customer proximity * Prioritised investment to key growth opport
Slide 9: Accelerate: now expected to deliver c.$625m cost savings over 3 years
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH => Accelerate: now expected to deliver c.$625m cost savings over 3 years (from c.$500m previously) c.50% re-invested for future growth to 50% d th h Overheads ce tee toe? to bottom line Relatively evenly spread over next 3 years although differences
Slide 10: Optimising A&P to be more effective and efficient
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Optimising A&P to be more effective and efficient Agile Brand Community Virtual Studio; saving costs and for Global activation time, enabling local relevance LOVELY GAME FOR A GUINNESS a Ea * Optimising spend to maximise impact Vietnam * Developing
Slide 11: Accelerate: additional cost saving detail
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Accelerate: additional cost saving detail * More consistent measurement of consumer facing investment to accelerate growth, focused on biggest growth opportunities * Leveraging data and Al to be quicker and more effective * Driving more effective an
Slide 12: Deleveraging: more consistent cash and increased financial flexibility
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Deleveraging Deleveraging: more consistent cash and increased financial flexibility * We expect this to be supported by: — Positive operating leverage from fiscal 26 — Reduced capex spend, fiscal 26 guidance: $1.2-$ 1.3bn (fiscal 25: $1.5bn). Moving
Slide 13: Spirits remain attractive longer term supported by favourable underlying fundamentals
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Spirits remain attractive longer term supported by favourable underlying fundamentals Global TBA, Spirits volume (EU) per LPA+ per annum Population growth i eee. CAGR 2014-2024 -2.2% pig consumers International CAGR 2014-2024 by 2035 Spirits 0.4% Gr
Slide 14: Near term pressure largely cyclical and macro economic driven
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Near term pressure largely cyclical and macro economic driven e =e = Consumer sentiment Consumers getting less, still subdued despite spending more -2.5% Households i spending Consumer sentiment 20% more for 1s January 2025 7% to M July 2025 less pr
Slide 15: Continuing to monitor near term changes in consumer behaviour
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Continuing to monitor near term changes in consumer behaviour Gen Z household penetration No significant impact to date from Consumers who are moderating in spirits has increased GLP-1s and Cannabis still socialising a pez oer Reocigction® eS Cannab
Slide 16: F25 full year key performance metrics
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH F25 full year key performance metrics Organic net sales “ny +1.7% Excluding Ciroc transaction +1.5% ! Organic operating profit Ny, -0.7% Excluding Ciroc transaction -1.0% ! Free cash flow $2.7on ay +$0.1on Pre-exceptional EPS 1 64 . Qcents \ -8.6% D
Slide 17: Leveraging the breadth of our footprint
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Leveraging the breadth of our footprint Improved share in North America Fiscal 25 organic net sales growth by region Beer growth offset spirits softness in Europe Weaker China and Travel Retail, offsetting India growth in Asia Pacific North America
Slide 18: North America: organic sales growth in a continued cautious consumer environment
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH North America: organic sales growth in a continued cautious consumer environment, more to do US gained share of TBA led by Don Julio and Crown Royal, supported by targeted A&P, more to do across the portfolio Capitalised on consumer shift to small s
Slide 19: Continued focus on our largest global premium brands
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Continued focus on our largest global premium brands Don Julio Johnnie Walker Guinness GUINNESS IN: GAME ON. FF BLOND tt = i, » -5% organic net sales in a softer category +38% organic net sales +13% organic net sales Double-digit growth Improved H2
Slide 20: Extending portfolio reach and consumer appeal with innovation
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Extending portfolio reach and consumer appeal with innovation Tequila Don Julio 194-7 Johnnie Walker (= pronounced “Gou") Special edition developed Innovating and recruiting across with Peggy Gou price ladder and integrating in culture Celebrating b
Slide 21: Moderation: progress in non-alcohol and with RTDs
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Moderation: progress in non-alcohol and with RTDs Non-alc c.40% organic net sales growth RTDs +2% organic net sales growth Ritual Zero Proof, USA Pre-measured serves and often lower ABV More deliberate strategy for selective RTD markets Shared learn
Slide 22: Organic net sales growth balanced across volume and price/mix
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Organic net sales growth balanced across volume and price/mix Volume growth in 3 of 5 regions; continued pressure in NAM and Europe Positive price/mix in all regions apart from APAC given downtrading in South East Asia and China more than offsetting
Slide 23: Organic operating profit decline reflected overhead costs, offsetting efficiencies
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Organic operating profit decline reflected overhead costs, offsetting efficiencies Movement in operating profit $m DIAGEO 3 Organic operating margin -68bps Preliminary Results Fiscal 25 urce: Diageo. 1 $m-FVR & Other includes: Fair Value Remeasureme
Slide 24: F25 improved cash flow given strong working capital management
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH F25 improved cash flow given strong working capital management Free cash flow $m 6,053 1549 77 4,427 M4 Working capital improvement with higher creditors and lower maturing stock investment in fiscal 25 Other movements mainly driven by thie lower di
Slide 25: EPS negatively impacted by associates and joint ventures as well as adverse FX
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH EPS negatively impacted by associates and joint ventures as well as adverse FX Movement in EPS pre-exceptionals cents 179.6 90 Ay 27 99 25 164.2 F24 FY EPS A Associates F25 FY EPS Pre-Exceptionals Secnenigo @lgenits lp Tes and JVs itn Pre-Exceptiona
Slide 26: Balance sheet at the end of fiscal 25
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Balance sheet at the end of fiscal 25 F25 FY F24 FY Movement YoY Closing net debt! $m (21,854) (21,017) (837) Average Net Debt! $m (21,540) (21,034) (506) Net interest charge (pre-exceptional items) $m (830) (906) 76 Net other finance charges $m 1 2
Slide 27: Fiscal outlook
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Fiscal 26 outlook expect: DIAGEO 27 | Preliminary Results Fiscal 25 Organic net sales growth: to be at a similar level to fiscal 25 given a continued challenging market, growth weighted to H2 with organic net sales down slightly in H1 Organic profit
Slide 28: Results in line with guidance in a challenging year
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH DIAGEO Results in line with guidance in a challenging year Update on reshaped priorities and focus: sharpening our strategy to drive accelerated growth Accelerate progressing at pace, creating a more agile and performance focused organisation Focus
Slide 29: Celebrating life, every day, everywhere
DIAGEO Celebrating life, every day, everywhere
Slide 30: Appendix
Appendix
Slide 31: Fiscal exceptional operating items
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Fiscal 25 exceptional operating items Exceptional operating items $m Impairment and other related charges Distill Ventures investments 458 Aviation American Gin 231 Other impairments and related charges! 221 Restructuring programmes - Accelerate and
Slide 32: Update on implications of recent tariff developments
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Update on implications of recent tariff developments Proactively managing and scenario c.75% planning to mitigate through; not impacted by US * Inventory management * Supply chain optimisation tariffs * Cost management * Re-allocation of investments
Slide 33: US spirits industry and Diageo consumption growth
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH US spirits industry and Diageo consumption (Nielsen/NABCA) growth; Diageo US spirits shipments, depletions and consumption growth DIAGEO US spirits Nielsen/NABCA sales Growth vs prior year Industry Diageo 0.2% 1.2% 24% 3.0% “41% 4.2% “2M LOM L3M u2M
Slide 34: Foreign exchange information and guidance
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Foreign exchange information and guidance F25 net sales value - FX rates F26 foreign exchange update Curren canenee Spoil Soot cli Laverodscctual Baveragecctucl Using hedged rates in place and spot rates sreney ee Ney 30June 2024 30 Jun 2025 FY F24
Slide 35: Historic growth across regions — organic
FOCUSED ON DELIVERING SUSTAINABLE LONG-TERM GROWTH Historic growth across regions — organic F24 F25 Qi Q2 H1 Q3 Q4 H2 FY Qi Q2 H1 Q3 Q4 H2 FY North America (1.0) 82 ~ «(15) (47) (26) (3.6) (25) (O)—siad0st—<‘“ DS) Europe ol 59 934 (35) 69 23 29 10 07 O08 (04) OO (02) 03 Asia Pacific 63 56 595 34 24
Slide 36: Definitions and reconciliation of non-GAAP measures to GAAP measures
DIAGEO Financial/legal appendix: Definitions and reconciliation of non-GAAP measures to GAAP measures Diageo's strategic planning processis based on certain norGAAP measures, including organic movernents. These nor-GAAP measures are chosen for planning and reporting, and some of them are used for in
Slide 37: Continued from the previous page
Continued from the previous page Calculation of organic movements An explanation of non-GAAP measures, including organic movements, is set out on pages 227-235 of Diageo's Annual Report for the year ended 30 June 2024. (a) Exchange rates Exchange in the organic moverent calculation reflects the adju
Slide 38: Continued from the previous page
DIAGEO Continued from the previous page (c} Exceptional items Exceptional items are those that in management's judgement need to be disclosed separately. Such items are included in the income statement caption to which they relate, and form part of the segmental reporting, and are ‘excluded from the
Slide 39: Continued from the previous page
Continued from the previous page Adjustment in respect of hyperinflation The group's experience is that hyperinflationary conditions result in price increases that include both normal pricing actions reflecting changes in demand, commodity and other input costs or considerations to drive commercial
Slide 40: Investor Relations contacts
Sonya Ghobrial Head of Investor Relations Sonya.Ghobrial@diageo.com +44 (0)7392 784 784 Andy Ryan Investor Relations Director Andrew.Ryan@diageo.com +44 (0)7803 854 842 Grace Murphy Investor Relations Manager Grace.Murphy@diageo.com +44 (0)7514 726 167 DIAGEO = 40 Preliminary Results Fiscal 25