Diageo plc (DEO) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone. Thank you for joining our results presentation for the first half of fiscal 25. Today, I will begin by providing an update on our performance for the half. Then our new CFO, Nick Giangianni, will share his early impressions of the business and discuss our results, the recent tariff announcements, and the near-term outlook. I will then come back and share some final reflections. Starting with performance. Despite a continued challenging macro environment and industry backdrop, in the first half of fiscal 25, our results showed positive momentum. Organic net sales returned to growth of 1%, with growth in four out of five regions, including North America. While consumers remain cautious and the macroeconomic recovery is taking longer than expected, particularly in North America and China, I am pleased with the results we have delivered in the half. At the end of the last fiscal, we shared our confidence that the actions we were taking would return us to growth as the consumer environment improves. Today, our performance demonstrates that we are making meaningful progress, even though the environment remains challenging and will likely continue to be volatile given the recent tariff announcements. Our focus strategy is delivering results. Notably, we have held or gained market share in 65% of our net sales and measured markets. We also continue to effectively leverage the strength of our diversified portfolio across price tiers and geographies to respond to emerging consumer trends. Looking ahead, we see opportunities to continue to outperform. We are focused on strategic initiatives that will enhance our financial resilience driving sustainable long-term growth and the ability to deliver positive operating leverage in the future. More on this fro...