Spirits giant Diageo reports revenue above analysts’ expectations in the first quarter of its fiscal year. Organic growth was also stronger than expected. The company repeats its full-year guidance.
Revenue rose 1.2 percent to USD 4,931 million (4,875). This compares with analyst consensus of USD 4,805 million and was thus 2.6 percent higher than expected.
Organic revenue growth amounted to 1.4 percent, compared with the expected −0.4 percent. Excluding EABL, organic growth was 0.6 percent.
Volumes increased organically by 1.1 percent and the price and mix effect was positive at 0.3 percent.
Latin America and the Caribbean, as well as Asia Pacific, posted mid-single-digit organic growth. India and EMEA recorded low-single-digit growth, while North America saw a mid-single-digit decline.
CEO Dave Lewis says the quarter developed in line with the company’s own expectations. North America remains the biggest challenge.
Diageo repeats its guidance for 2026/2027 of broadly unchanged organic revenue and a low- to mid-single-digit increase in organic operating profit.
Free cash flow is expected to amount to approximately USD 2 billion and investments to around USD 1.25 billion.
Key figures, USD millionActualConsensusDeviationPrevious yearChangeRevenue4,9314,805+2.6 %4,875+1.2 %
