LONDON (ShareCast) - (Sharecast News) - Alcoholic beverage giant Diageo posted a mixed set of FY results on Tuesday, as the group navigated FX headwinds and restructuring costs while maintaining organic growth.
Organic net sales rose 1.7%, supported by balanced volume and pricing gains, while operating profits before exceptional items dipped just 0.7% to $5.7bn, reflecting continued investment in overheads, while adjusted margins narrowed 68 basis points to 28.2%.

However, reported earnings were impacted by impairment charges and FX effects, with operating profits down 27.8% at $4.33bn, reported net profit 39.1% lower at $2.53bn, and basic EPS down 38.9% at USD 105.9 cents.

Cash generation remained strong, with free cash flow rising to $2.74bn and net operating cash flow topping $4.3bn, up from $2.33bn and $4.1bn, respectively. Diageo also increased its cost savings target under its Accelerate programme to $625m and expects to deliver $3bn in free cash flow in fiscal 2026.

Diageo said its diversified portfolio and disciplined execution helped offset pressure across parts of its business, with standout performances from the Don Julio, Guinness, and Crown Royal Blackberry brands.

It also recommended a FY dividend of USD 103.48 cents.







Reporting by Iain Gilbert at Sharecast.com

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