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Diageo Aide Memoire Q1 Fiscal 2026
Diageo Aide Memoire Q1 Fiscal 2026
This document sets out public information previously provided by Diageo plc, or else widely available in the market. Unless otherwise specified, the outlook comments below come from the FY fiscal 25 press release and presentation on 5 August 2025, with other content sourced from publicly available information. No new information is given, and there will be no comment on current trading or further guidance provided.
Fiscal 26 outlook
With the FY fiscal 25 press release on 5 August 2025, we provided the following guidance for fiscal 26:
- Organic net sales growth – expect to be at a similar level to fiscal 25 given a continued challenging market. Growth will be more weighted to the second half, with organic net sales down slightly in the first half.
- Organic operating profit growth – expect mid-single-digit organic operating profit growth, skewed to the second half, and supported by cost savings from the Accelerate programme. This also includes the impact of tariffs as shared at that time.
- Taxation – expect tax rate before exceptional items to be c.25% (fiscal 25: 24.9%).
- Effective interest rate – expect effective interest rate to be c.4.0% (fiscal 25: 4.1%).
- Capital expenditure – expect to be in the range of $1.2 - $1.3 billion (fiscal 25: $1.5 billion).
- Free cash flow – expect to be c.$3 billion (fiscal 25: $2.7 billion), including exceptional cash costs related to the Accelerate programme.
Overall net sales performance comments
- On 4 February 2025, we reported H1 fiscal 25 organic net sales up 1.0%, with positive price/mix of 1.2%, partially offset by a 0.2% volume decline1. Restating for disposals completed in H2 fiscal 25, most notably, the Cîroc brand in North America, H1 organic net sales increased 1.3%. In full year fiscal 25, organic net sales growth (including the impact of the Cîroc transaction) was 1.7%, driven by organic volume growth of 0.9% and positive price/mix of 0.8%.