2025 Preliminary Results

We have published our 2025 Preliminary Results. Register for our webcast below.

Summary

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In a challenging year, we delivered 1.7% organic net sales growth reflecting the strength of our portfolio and our diversified footprint.

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I am pleased to report on our fiscal 25 results which in a challenging year, were in line with our guidance. We delivered 1.7% organic net sales growth reflecting the strength of our portfolio and our diversified footprint. While we are encouraged by areas of progress and the standout performance from Don Julio, Guinness and Crown Royal Blackberry, there is clearly much more to do across our broader portfolio and brands. We recognise the need to drive meaningful growth opportunities in an evolving TBA landscape, and we are sharpening our strategy to accelerate growth.

Our Accelerate programme is progressing well and is central to creating a more agile operating model. As such, I am pleased to announce that we are increasing our cost savings target by c.$125 million, to c.$625 million over the next three years. We are also committed to strengthening our balance sheet and expect to deliver c.$3 billion free cash flow in fiscal 26, increasing financial flexibility whilst continuing to invest for longer term growth.

While macroeconomic uncertainty and the resulting pressure on consumers continues to weigh on the spirits sector, we believe in the attractive long-term fundamentals of our industry and in our ability to continue to outperform as the TBA landscape evolves. We are focused on what we can manage and control and executing at pace. The Board and management are committed to delivering improved financial performance and stronger shareholder returns on a sustained basis."

Nik Jhangiani

Interim Chief Executive

Organic net sales growth balanced between volume and price/mix

Reported net sales of $20.2 billion declined 0.1% due to unfavourable foreign exchange of (0.6)% and acquisition and disposal adjustments of (1.1)%, partially offset by hyperinflation adjustments and organic net sales growth.
Organic net sales growth of 1.7% was driven by organic volume growth of 0.9% and positive price/mix of 0.8%. Excluding the impact of the Cîroc transaction, organic net sales growth was 1.5%, with 0.8% volume growth and 0.7% price/mix.⁽¹⁾
Diageo grew or held total market share in 65%⁽²⁾ of total net sales in measured markets, including in the US.

Gross margin expansion more than offset by investment in overheads, operating profit slightly down

Reported operating profit declined 27.8% and reported operating profit margin declined 819bps, primarily due to exceptional impairment and restructuring costs, unfavourable foreign exchange and a decline in organic operating margin.
Organic operating profit declined by 0.7%; organic operating profit margin declined 68bps, mainly due to continued investment in overheads, partly offset by slight gross margin expansion. Excluding the impact of the Cîroc transaction,⁽¹⁾ organic operating profit declined 1.0%, in line with prior guidance, and organic operating margin declined 70bps.
EPS pre-exceptionals was 164.2 cents, down 8.6%.

Increased cash flow, focus on reducing leverage through Accelerate

Net cash flow from operating activities increased by $0.2 billion to $4.3 billion. Free cash flow increased by $0.1 billion to $2.7 billion.
Net debt as at 30 June 2025 was $21.9 billion, with a leverage ratio of 3.4x net debt to adjusted EBITDA,⁽³⁾ in line with the guidance range of 3.3-3.5x.
Recommended full year dividend of 103.48 cents.

Accelerate on track with savings target increased; fiscal 26 outlook provided

Firm focus on productivity, driving cash and growth. Cost savings programme target increased to c.$625 million, up from c.$500 million.
In fiscal 26, expect organic sales growth to be similar to fiscal 25 and organic operating profit growth to be mid-single-digit, including the impact of tariffs as at this time.

^{(1) On 7 April 2025, Diageo entered into a strategic partnership with Main Street Advisors. As part of the transaction, Diageo transferred its majority ownership interest in Cîroc in North America in exchange for interest in Lobos 1707 Tequila globally. The transaction was completed in June 2025. As a result, Cîroc in North America is no longer consolidated in the group’s financial statements and is now accounted for as an investment in associate.}

^{(2) Internal estimates incorporating Nielsen, Association of Canadian Distillers, Dichter & Neira, Frontline, INTAGE, IRI, ISCAM, NABCA, State Monopolies, TRAC, IPSOS and other third-party providers. All analysis of data has been applied with a tolerance of +/- 3 bps and the descriptions applied of gaining, holding or losing share by the Company or brands are based on estimated performance within that tolerance. Percentages represent percent of markets by total Diageo net sales contribution that have held or gained total trade share in the fiscal year to date. Measured markets indicate a market where we have purchased any market share data. Market share data may include beer, wine, spirits or other elements. Measured market net sales value sums to 89% of total Diageo net sales value for the twelve months ended 30 June 2025.}

^{(3) Leverage ratio calculated using adjusted net debt which is the equivalent to adjusted net borrowings (net borrowings plus post-employment benefit liabilities before tax).}

READ THE PRESS RELEASE 2025 Preliminary Results webcast

Our fiscal 25 performance

1.7 %

Organic net sales movement

- 0.7 %

Organic operating profit before exceptional items

164.2 c

Basic earnings per share (EPS) before exceptional items

Results in line with guidance in a challenging year
Update on reshaped priorities and focus: sharpening our strategy to drive accelerated growth
Accelerate progressing at pace, creating a more agile and performance focused organisation
Focus on cash continues, confident on deleverage commitment
Continue to believe in attractive long-term fundamentals of industry in an evolving TBA landscape

Fiscal 25 organic net sales growth by region

Strategy update - at a glance

In May 2025, we launched the Accelerate programme to strengthen Diageo’s foundations for long-term, sustainable growth. Phase one is progressing well, with clear financial priorities and good momentum across markets. This shift in how we operate is creating a more agile and efficient business, enabling us to optimise investment, allocate resources more effectively and should enable us to deliver better growth.

Through our prioritisation tools and data-driven frameworks, we are focused on accelerating growth by directing investment to higher growth opportunities. Don Julio delivered double-digit growth in all regions and gained share in measured markets representing >90% of net sales, Guinness delivered double-digit growth, and gained share in its three largest markets, while Guinness Microdraught opened new global distribution opportunities. And in whisky, Johnnie Walker gained share of international whisky and scotch; with innovation importantly supporting recruitment.

Optimising A&P spend remains a key focus, with more targeted investment and greater efficiency across our marketing operations. This is well underway and a key priority for the coming year. In fiscal 2025, we reduced development costs (non-working) to 14% of A&P spend, down from 21% in fiscal 2024, leveraging our AI-driven content production and agile ways of workings across our marketing function, including Agile Brand Communities, and Conscious Create Teams.

Moderation is a key growth opportunity for Diageo, supported by our leadership in non-alcoholic spirits, more than four times the size of our nearest competitor. ⁽¹⁾ In fiscal 2025, our non-alc portfolio organic net sales grew c.40%. We extended our non-alc leadership with the acquisition of Ritual Beverage Company LLC in the US. Guinness 0.0 delivered double-digit growth. RTDs can also play a key role in moderation - offering convenience and often lower ABV options. We initiated a more targeted strategy for RTDs in selective key RTD markets, with some encouraging early signs.

In the US, our spirits route-to-market has benefited from increased investment in capability building, commercial execution and investing in key accounts, and we are seeing early signs of incremental growth. We continue to optimise our supply chain, with a new manufacturing and warehouse facility announced in Montgomery, Alabama, to increase efficiency and sustainability. Additionally, in Europe, we introduced a new strategy and operating model under Accelerate, including targeted investments and more standalone markets. Across Diageo, we are embedding a more performance-driven culture, focused on speed, agility, continuous improvement, and leadership accountability.

⁽¹⁾ RSV IWSR 2024

Don Julio delivered double-digit growth in all regions and gained shared in measured markets representing >90% of net sales

Guinness delivered double-digit growth, and gained shared in its three largest markets, Guinness Microdraught opened new global distribution opportunities