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flag Diageo's Q1 sales flat, hurt by weak China and U.S. markets, but cost savings and cash flow targets remain on track.

flag Diageo reported flat organic net sales in Q1 fiscal 2026, with volume growth offset by price/mix declines, mainly due to weak Chinese white spirits and a soft U.S. consumer market. flag Reported sales fell 2.2% to $4.9 billion, primarily from disposals. flag The company updated its 2026 outlook to flat to slightly declining organic sales and low to mid-single-digit operating profit growth, citing ongoing China and U.S. challenges. flag It remains on track for $625 million in cost savings from its Accelerate programme, expects $3 billion in free cash flow, and reaffirmed its net debt-to-EBITDA target of 2.5–3.0x by 2028.

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