Full Year 2026 Diageo PLC Earnings Call Transcript

Aug 6, 2026 / 10:00 AM GMT

Transcript

Key Points

Positve

Strong free cash flow of $3.2 billion, up $463 million year-over-year, enabling debt reduction.
Organic operating profit growth of 2%, supported by cost savings from the accelerate program.
Good momentum in Europe, Latin America, and Africa, with double-digit growth in Guinness in Great Britain and strong performance in Brazil and Colombia.
India delivered organic net sales growth of around 7%, driven by prestige brands and innovation.
Leverage ratio improved to 3.1 times from 3.4 times, with further deleveraging expected from asset sales.
Delivered 85% of the accelerate program savings in fiscal '26, totaling $514 million.

Negative

North America organic sales declined 8.4%, with tequila sales down approximately 21% due to weakness in Casamigos and Don Julio.
Asia Pacific organic sales fell around 6%, impacted by continued weakness in Chinese white spirits.
Gross profit declined $506 million organically due to adverse product mix, cost inflation, and tariffs.
Reported operating profit before exceptionals declined 0.4%, with significant impairment charges of $1.5 billion and restructuring charges of $0.9 billion.
Organic sales declined 3% overall, with volume losses in North America and Asia Pacific.
Marketing spend was reduced, reflecting cost savings but potentially impacting long-term brand investment.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

DGE.L - Diageo PLC
Full Year 2026 Diageo PLC Earnings Call
Aug 06, 2026 / 10:00AM GMT

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Presentation
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Unidentified_1 [1]
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I've issued today 2 statements, 1 to Nick to walk you through the results of last year.

Get ready for the capital markets day this afternoon.

Take over to you.

Thank you, Dave.

So fiscal '26 has been a mixed year with good momentum in Europe, Latin America, and Africa, but with challenges in North America and Asia Pacific that we've talked about through the year.

We're focused on becoming more competitive in the US and we'll share more details on this later at our capital markets day.

We have a strong free cash flow which has enabled us to reduce leage at the end of the year.

We've made good progress on the 3 priorities that they've set out at our interim results and the

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