Diageo (NYSE:DEO), the spirits and beer maker, said reported net sales for the quarter ended 31 March rose 2.3% to $4.5bn and organic net sales grew 0.3%, and it reiterated its fiscal 26 guidance issued at H1 results.
Organic growth was driven by Europe, Latin America & Caribbean and Africa-each up at least high-single-digit and helped by Easter timing and advance World Cup sales-while North America declined 9.4% (US Spirits down 15.4%) and Asia Pacific fell 0.8% as Chinese white spirits weakened.
The group said its Accelerate cost programme remains on track to deliver c.$300m of savings by end of fiscal 26 and reiterated that the sale of United Spirits Limited’s RCB business was announced on 24 March with the disposal of its EABL shareholding expected to complete in calendar H2 2026 to reduce leverage and improve financial flexibility.
Diageo left full-year guidance unchanged: organic net sales down 2-3% and organic operating profit growth flat to up low-single-digit (including c.$300m Accelerate savings), a tax rate before exceptional items of c.25%, an effective interest rate c.4.0%, capex at the lower end of $1.2-1.3bn and free cash flow of $3bn (excluding a c.$100m one-off inventory build).
"We are pleased with the strong growth across Europe, LAC and Africa; North America remains our biggest challenge, where market conditions are soft and our offer needs to be more competitive, and actions are already underway to address this," Sir Dave Lewis, Chief Executive, said.
Diageo said it will share a Strategy Update alongside its fiscal 26 full-year results on 6 August.
