LONDON (dpa-AFX) - Diageo PLC (DGE.L) reported that its net sales for the first quarter of fiscal year 2026 declined by 2.2% to $4.875 billion, largely reflecting the negative impact of disposals and with negligible impact from foreign exchange.
Organic net sales were flat in the quarter, with organic volume growth of 2.9% offset by negative price/mix of 2.8%, largely due to adverse mix in Asia Pacific due to the weaker results in China in Chinese white spirits (CWS). Excluding this, price/mix would have been relatively flat.
Solid organic net sales growth in Europe, LAC and Africa was offset by weakness in CWS impacting Asia Pacific results and softer performance in North America as US Spirits declined reflecting weak consumer confidence.
For fiscal 2026, the company expects organic net sales growth to be flat to slightly down including the adverse impact from Chinese white spirits and a weaker US consumer environment than originally planned for. Previously it was expected that annual organic sales growth would be on par with fiscal 2025.
Annual organic operating profit growth is expected to be low to mid-single digit, including the impacts of Chinese white spirits and a weaker US consumer environment in the organic net sales guidance. This also includes the impact of tariffs as at this time.
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