LONDON (dpa-AFX) - Diageo plc (DEO), a producer of premium alcoholic beverages, on Thursday reported lower full-year profit, primarily reflecting higher exceptional operating charges. The company also issued its outlook for fiscal 2027 and provided medium-term financial targets.
Profit before taxation declined to $2.564 billion from $3.537 billion a year ago.
Exceptional operating charges increased to $2.527 billion from $1.369 billion a year earlier, mainly due to higher impairment and restructuring charges.
Profit attributable to equity shareholders of the parent company declined to $1.737 billion, or 78.1 cents per basic share, from $2.354 billion, or 105.9 cents per basic share, a year earlier.
Basic earnings per share before exceptional items increased to 165.3 cents from 164.2 cents.
Operating profit fell 27.2% to $3.156 billion from $4.335 billion, while operating profit before exceptional items was broadly unchanged at $5.683 billion, compared with $5.704 billion in the prior year.
Net sales decreased 2% to $19.643 billion from $20.245 billion.
Separately, at its Capital Markets Day on Thursday, the company said it expects to deliver approximately $1 billion in cumulative savings over the next three years through changes to its operating framework and further supply chain initiatives.
For fiscal 2027, Diageo expects broadly flat organic net sales growth and low- to mid-single-digit organic operating profit growth.
Over the medium term, the company expects low-single-digit organic net sales growth and mid-single-digit organic operating profit growth over fiscal 2027-2029. It also expects earnings per share growth to outpace organic operating profit growth on a currency-neutral basis.
On the LSE, Diageo shares rose nearly 5% to 1,720.50 pence.
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