Diageo profits fall 28% amid pressure on consumers
Diageo PLC (LSE:DGE) reported a 28% drop in full-year profit but kept its dividend flat as expects to traverse a "challenging" market and generate modest profit growth for the coming year, helped by increased savings, product innovation and a strong presence in non-alcoholic drinks. The Guinness, Baileys and Pimms maker reported a 0.1% decline in net sales to $20.2 billion for the year to 30 June 2025, bang in line with the average analyst forecast.
Diageo to Report FY25 Results: What Surprise Awaits Investors?
DEO leans on premiumization and pricing power to drive growth, even as volumes soften across key markets.
Diageo guidance for 2026 likely to be flat or lower, cautions analyst
Diageo PLC (LSE:DGE) should be able to 'split the G' and hit guidance this year, according to analysts at Citi, but the main investor focus will be on the outlook when full-year results are released on 5 August. The US bank, which reiterated its 'buy' rating on the share, expects organic sales growth (OSG) guidance for the year to June 2026 to be "subdued", potentially "flat-to-slightly lower" than the past year.
Diageo: Is It Worth Leading This Industry
Diageo has faced a tough 3.5 years, halving its market value, only partly offset by its resilient dividend. Structural headwinds like moderation and changing youth drinking habits challenge long-term growth, despite the company's strong premium brand portfolio. Partly debt-funded shareholder returns have pushed leverage to critical levels, but management targets leverage improvement by FY 2028, and free cash flow at long-term historical averages by FY 2026.
Diageo CEO exit underscores deeper industry woes; it's not a quick fix
Debra Crew's departure from Diageo PLC (LSE:DGE) is unlikely to mark a turning point for the world's largest spirits group. In RBC's view, the move, announced yesterday with immediate effect, was hardly unexpected given the Guinness maker's performance under her leadership, with total shareholder returns down 39% in euro terms.
Guinness Owner Diageo's CEO Steps Down as the Alcoholic Beverage Giant Struggles
Diageo (DEO) CEO Debra Crew resigned Wednesday, effective immediately, as the maker of brands including Smirnoff vodka and Guinness beer struggles with weak sales.
Diageo shares pop as CEO steps down with immediate effect
Diageo PLC (LSE:DGE) shares spiked after the Guinness and Smirnoff maker said that Debra Crew has stepped down as chief executive with immediate effect. Insisting the move had been by mutual agreement, the FTSE 100 booze maker said it has begun a "comprehensive formal search process", examining both internal and external candidates.
Can Diageo Sustain Its Premiumization Momentum Amid Global Headwinds?
DEO leans on premium brands like Don Julio and Guinness to offset global headwinds and sustain growth momentum.
Diageo: Steady as she goes, says American bank
Diageo PLC (LSE:DGE) finds itself in a holding pattern, delivering on its current targets while managing expectations for the year ahead. As the company approaches its full-year results on August 5, the focus will be on the outlook for 2026, which is expected to show modest organic sales growth.
Diageo defies sector gloom as Remy Cointreau scraps 2030 targets
Drinks giant Diageo PLC (LSE:DGE) opened higher on Wednesday, appearing unfazed by a profit warning from French rival Remy Cointreau, which abandoned its long-term growth targets due to persistent weakness in key markets and the impact of tariffs. Remy, best known for its cognac and Cointreau liqueur, said its 2030 sales ambitions were no longer achievable, citing continued sluggish demand in the US, ongoing pressure in China, and trade tariffs on its flagship cognac.
Diageo: Outlook Confirmed - We Remain Buyers
Diageo's management is focused on margin control, cost savings, and positive operating leverage, targeting $3 billion free cash flow in 2026 and lower leverage by 2028. US tariffs are manageable, with mitigation strategies in place. Europe is performing well, and supply chain optimizations support future EPS growth. DEO announced a $500 million cost savings plan over the next three years.
Rumors Of Diageo's Death Appear Greatly Exaggerated
Diageo's stock is significantly down from its 2021 highs, but its premium brands and strong margins remain intact, despite stagnant growth and high debt. The current valuation is historically attractive, trading at a discount at only 17.7x earnings and 3x sales, making it appealing for long-term investors. Concerns about Gen Z drinking less are overstated; premium brands like Guinness and Don Julio continue to drive organic growth and long-term value.
