UK's Diageo FY sales fall 3%, miss analyst estimates
UK's Diageo FY sales fall 3%, miss analyst estimates
Overview
UK spirits maker's preliminary FY26 sales fell 3%, missing analyst expectations
Adjusted operating profit missed analyst expectations, up 2% organically but down on a reported basis
Company recommended full-year dividend of 50c per share, unchanged from prior guidance
Result Drivers
REGIONAL WEAKNESS - Growth in Europe, LAC and Africa was offset by declines in North America and Asia Pacific, with US Spirits and Chinese white spirits underperforming
COST SAVINGS - Organic operating profit margin rose, mainly due to cost savings, partly offset by adverse mix and tariffs
RESTRUCTURING AND IMPAIRMENTS - Reported operating profit fell due to exceptional restructuring costs and impairment charges, including in Türkiye and certain brands
Company press release: ID:nRSF5920Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Sales | Miss | $19.64 bln | $20.27 bln (22 Analysts) |
FY Adjusted Operating Profit | Miss | $5.68 bln | $5.89 bln (20 Analysts) |
FY Adjusted EBIT Growth |
| 2.00% |
|
FY Dividend |
| $0.50 |
|
FY Operating Profit |
| $3.16 bln |
|
FY Organic Sales Growth |
| -2.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the distillers & wineries peer group is "buy"
Wall Street's median 12-month price target for Diageo PLC is GBp1,950.00, about 18.8% above its August 5 closing price of GBp1,641.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Aug 3 - India bars some Diageo, Inbrew liquor over artificial flavouring
Aug 5 - Australia's Endeavour prelim FY26 profit falls, takes $262 million overhaul hit
Aug 6 - Kenya's East African Breweries full-year pretax profit rises on increased sales
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)