Guinness maker Diageo PLC (LSE:DGE) poured slightly better quarterly results than feared, but the booze maker still disappointed investors by cutting its full-year sales and profit guidance. First-quarter organic revenue was flat – ahead of forecasts for a 1.3% decline – but the company now expects sales to be “flat to slightly down” for the year to June 2026, with operating profit is only expected to rise by a low-to-mid-single-digit percentage.
Shares in Diageo have extended their long-running slump on Thursday, after the Guinness maker cut guidance due to fresh sales troubles.
Diageo PLC (LSE:DGE) reported flat organic net sales in the first quarter of its new financial year, as lower demand in China and a weaker US consumer environment offset growth in Europe, Latin America and Africa. The FTSE 100-listed maker of Guinness, Smirnoff and Johnnie Walker said it expects to be able to mitigate "around half" of the impact of US and European tariffs on operating profit.
Citi's latest note on Diageo PLC (LSE:DGE), maker of Guinness and Smirnoff vodka, makes for a sober read. The broker expects first-quarter organic sales growth to fall 1.3%, in line with consensus, and warns that full-year guidance is likely to be cut to “flattish” when the company updates investors.
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Diageo PLC (LSE:DGE) imminent update looks set to leave investors nursing a hangover. Citi expects the drinks group's first-quarter organic sales growth to fall 1.8%, worse than the consensus forecast of a 0.7% decline, prompting the broker to trim its outlook for the year.
Seneca House Advisors fully exited its position in Diageo (DEO 0.39%), selling 35,043 shares for an estimated $3.53 million in Q3 2025, according to an SEC filing dated October 10, 2025.
Diageo's stock is down by nearly a third for the past 18-month period, and value investors should take notice. A potential turnaround is likely to take a few years, but the share price is now priced at levels that assume a highly unlikely scenario. The issue of deleveraging is still a major risk overhang that could soon be resolved if management sticks to their targets.
Diageo PLC (LSE:DGE) could unlock between $5 billion and $8 billion from asset sales as part of plans to streamline its portfolio and accelerate deleveraging, according to UBS. The Swiss bank, which maintained a 'buy' rating and 2,450p price target on the shares, believes proceeds from potential disposals could strengthen the Smirnoff and Guinness maker's balance sheet and fund new share buybacks.
Diageo plc (NYSE:DEO ) Barclays 18th Annual Global Consumer Staples Conference 2025 September 4, 2025 2:14 PM EDT Company Participants Manik Jhangiani - Interim CEO & Director Conference Call Participants Laurence Whyatt - Barclays Bank PLC, Research Division Presentation Laurence Whyatt Analyst Good afternoon, everyone, and thank you very much again for joining us for this afternoon session. I'm very happy to have Nik Jhangiani here from Diageo joining us.
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