2026 Preliminary Results, year ended 30 June 2026

Growth in Europe, LAC and Africa offset by weakness in North America and Asia Pacific

• Organic net sales declined 2.0%. Volume down 0.4% and unfavourable price/mix 1.6%.
• Negative price/mix primarily as a result of adverse mix due to US Spirits performance and weaker results in CWS.
• Excluding CWS, organic net sales for the group would have been c.1.5% higher.
• Reported net sales of $19.6 billion declined 3.0% mainly due to organic net sales decline and the impact of disposals.

Operating profit growth

• Organic operating profit increased by 2.0%, with organic operating profit margin up 116bps, mainly due to the benefit of cost savings, partly offset by adverse mix and tariffs.
• Reported operating profit declined 27.2%, with organic operating profit growth offset mostly by exceptional restructuring costs and impairment charges. Reported operating profit margin declined 535bps.
• Eps pre-exceptionals was 165.3 cents, up 0.7%

Continued cash focus delivering lower leverage

• Free cash flow increased by $463 million to $3.2 billion.
• Net debt as at 30 June 2026 was $20.5 billion, with net debt³ to adjusted EBITDA of 3.1x.
• The sale of East Africa Breweries PLC (EABL) remains on track to complete in calendar H2 2026. The disposal of Royal Challengers Bengaluru (RCB) cricket team by United Spirits Limited is progressing as planned.
• Recommended full year dividend of 50 cents per share, in line with the new dividend policy announced on 25 February 2026.

2 year restructuring programme underway

• Restructuring charges in fiscal 26 of $0.9 billion included c.$752 million costs for the implementation of our new operating framework (representing c.70% of the total cost) with the balance related to supply chain agility and Accelerate costs.
• The new operating framework will deliver c.$850 million savings over 2 years, starting in fiscal 27.

Impairment charges

• Impairment charges of $1.5 billion related largely to Türkiye due to the impact of hyperinflationary accounting and change in pricing in market, as well as the write down of the Don Papa brand and certain other smaller brands.

Sir Dave Lewis, Chief Executive Officer commented:

We are pleased with our progress in LAC, Europe and Africa. We are focused on recovering our competitiveness in NAM and we are working through the consequences of Government policy in Chinese white spirits.

The three priorities set out at the half year: i) Relevant brands in competitive category strategies ii) Customer, Customer, Customer and iii) A more agile and competitive operating framework, are serving us well and lay the foundation for the Capital Markets Day today.

The revised operating framework is being rolled out across Diageo and the changes are significant. In 2026 this change incurs a cost of $0.8 billion (c.70% of the total cost of the two year programme) with savings realised over 2 years starting in fiscal 27. These savings will allow us to invest in the turnaround without needing to reduce operating profit⁴.

As we close out the year I would like to put on record our appreciation for all Diageo colleagues and the way they have engaged with this change programme.

^{(1) See pages 34-41 for an explanation and reconciliation of non-GAAP measures.
(2) Represents organic movement.
(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).
(4) Operating profit pre-exceptional items}

^{See pages 34-41 for an explanation and reconciliation of non-GAAP measures, including organic net sales, organic marketing investment, organic operating profit, free cash flow, EPS before exceptional items, adjusted net debt, adjusted EBITDA and tax rate before exceptional items. Unless otherwise stated, movements in results are for the year ended
30 June 2026 compared to the year ended 30 June 2025.} 

Results, reports and presentations

2026 Preliminary Results webcast