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Preliminary Results Fiscal 26 Sir Dave Lewis, CEO & Nik Jhangiani, CFO 06 AUGUST 2026 Preliminary Results Fiscal 26
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Preliminary Results Fiscal 26 2 Cautionary statements concerning forward - looking statements and non - GAAP financial measures The following presentation contains ‘forward - looking’ statements . These statements can be identified by the fact that they do not relate only to historical or current facts and may generally, but not always, be identified by the use of words such as “will”, “anticipates”, “should”, “could”, “would”, “targets”, “aims”, “may”, “expects”, “intends” or similar expressions or statements . In this presentation, such statements include those that express forecasts, expectations, plans, outlook, objectives and projections with respect to future matters, including ambitions relating to free cash flow and improved operating leverage, Diageo’s Accelerate programme, the impact of changes in interest or exchange rates, anticipated cost savings or synergies, expected investments, the completion of any strategic transactions or restructuring programmes, anticipated tax rates, changes in the international tax environment, potential tariffs and Diageo’s ability to mitigate the impact of tariffs, expected cash payments, future inventory levels, future market share ambitions and any other statements relating to Diageo’s performance during or for the year ending 30 June 2027 or thereafter . By their nature, forward - looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future . There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward - looking statements, including factors that are outside Diageo’s control, which include, but are not limited to : (i) economic, political, social or other developments in countries and markets in which Diageo operates, including elevated geopolitical instability as a result of the conflicts in the Middle East and macroeconomic events that may affect Diageo’s customers, suppliers and/or financial counterparties ; (ii) the effects of climate change, or legal, regulatory or market measures intended to address climate change ; (iii) changes in consumer preferences and tastes, including as a result of disruptive market forces, changes in demographics and evolving social trends (including any shifts in consumer tastes towards at - home occasions, premiumisation, small - batch craft alcohol, lower or non - alcoholic products or THC and hemp - based THC beverages, increased use of GLP - 1 medications, and/or developments in e - commerce) ; (iv) changes in the domestic and international tax environment that could lead to uncertainty around the application of existing and new tax laws and unexpected tax exposures ; (v) changes in the cost of production, including as a result of increases in the cost of commodities, labour and/or energy due to inflation and/or supply chain disruptions ; (vi) any litigation or other similar proceedings (including with tax, customs, competition, environmental, anti - corruption or other regulatory authorities) ; (vii) legal and regulatory developments, including changes in regulations relating to environmental issues and/or e - commerce ; (viii) the consequences of any failure of internal controls ; (ix) the consequences of any failure by Diageo or its associates to comply with anti - corruption, sanctions, trade restrictions or similar laws and regulations, or any failure of Diageo’s related internal policies and procedures to comply with applicable law or regulation ; (x) Diageo’s ability to make sufficient progress against or achieve its ESG ambitions ; (xi) cyber - attacks and IT threats or any other disruptions to core business operations ; (xii) loss, operational disruptions to or closure of a production site, office or other key facility due to unforeseen or catastrophic events or otherwise ; (xiii) contamination, counterfeiting or other circumstances that raise consumer concerns and could harm the level of customer support for Diageo’s brands and adversely impact its sales ; (xiv) Diageo’s ability to maintain its brand image and corporate reputation or to adapt to a changing media environment ; (xv) fluctuations in exchange rates and/or interest rates ; (xvi) Diageo’s ability to successfully execute its strategic business transformation projects ; (xvii) Diageo’s ability to derive the expected benefits from its business strategies, including in relation to expansion in emerging markets, acquisitions, investments in joint ventures, productivity initiatives or inventory forecasting ; (xviii) Diageo’s ability to consistently deliver good value, service performance, commercial execution and suitable portfolio choices to its customers ; (xix) increased competitive product and pricing pressures, including as a result of introductions of new products or categories that compete with Diageo’s products and consolidations by competitors and retailers ; (xx) increased costs for, or shortages of, talent, as well as labour strikes or disputes ; (xxi) movements in the value of the assets and liabilities related to Diageo’s pension plans ; (xxii) Diageo’s ability to renew supply, distribution, manufacturing or licence agreements (or related rights) and licences on favourable terms, or at all, when they expire ; or (xxiii) any failure by Diageo to protect its intellectual property rights . All oral and written forward - looking statements made on or after the date of this presentation and attributable to Diageo are expressly qualified in their entirety by the above cautionary factors and by the factors set out under “Our principal risks and risk management” in Diageo’s Annual Report and under “Risk Factors” in Diageo’s Annual Report on Form 20 - F for the year ended 30 June 2025 filed with the US Securities and Exchange Commission . Any forward - looking statements made by or on behalf of Diageo speak only as of the date they are made . Diageo does not undertake to update forward - looking statements to reflect any changes in Diageo's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based . This presentation includes financial measures which are not presented in Diageo’s financial statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and as adopted by the UK and are considered “non - GAAP financial measures” under US Securities and Exchange Commission rules . Please refer to the section “Definitions and reconciliation of non - GAAP measures to GAAP measures” set out at the end of this presentation . 2
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Preliminary Results Fiscal 26 3 Good momentum in Europe, Latin America and Caribbean & Africa Focused on increasing competitiveness in North America Free cash flow ahead of guidance, reduced leverage Strong progress made on 3 immediate priorities including operating framework implementation Savings from operating framework changes will allow us to invest without reducing operating profit Look forward to sharing more during CMD
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F26 full year key performance metrics Preliminary Results Fiscal 26 4 Organic net sales Free cash flow Pre - exceptional EPS ↓ - 2.0 % ↑ 2.0 % $3,211m 165.3 cents ↑ $463m ↑ 0.7 % Organic operating profit Organic net sales growth in three of five regions Guinness, Smirnoff RTD and Johnnie Walker standout performers Organic operating profit growth mainly due to cost savings partly offset by adverse mix and tariffs Free cash flow supported by lower capex and maturing stock Full year recommended dividend of 50 cents , moved to dividend payout policy 30 - 50%, minimum floor 50 cents p.a. 1. Excluding year - on - year decline in Chinese White Spirits (CWS) For additional information on non - GAAP measures please see financial/legal appendix Excluding CWS c. - 0.5% 1 Excluding CWS c.4.5% 1
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Performance across the regions Preliminary Results Fiscal 26 5 F26 organic net sales growth by region 2 North America Europe Latin America and Caribbean Africa Asia Pacific - 8.4 % +7.7 % +13.3 % - 6.3 % +3.4 % NAM: Working hard to recover competitiveness Europe: Good performance in Türkiye and GB, continued strong Guinness momentum APAC: Strong growth in India more than offset by weakness in CWS Latin America and Caribbean: High - single - digit growth, led by Brazil and Colombia Africa: Broad - based good performance across region c.35% total net sales gaining/holding share in measured markets 1 The above map is intended to illustrate general geographic regions where Diageo has a presence and/or in which its products a re sold. It is not intended to imply that Diageo has a presence in and/or that its products are sold in every country or territo ry within a geographic region 1. Internal estimates incorporating Nielsen, Association of Canadian Distillers, Dichter & Neira, Frontline, INTAGE, IRI, ISC AM, NABCA, State Monopolies, TRAC, and other third - party providers. All analysis of data has been applied with a tolerance of +/ - 3 bps and the descriptions applied of gaining, holding or losing share by Diageo or brands are based on estimated performance within that tolerance. Per cen tage represents percent of markets by total Diageo net sales contribution that have held or gained total trade share in the f isc al year to date. Measured markets indicate a market where we have purchased any market share data. Market share data may include beer, wine, s pir its or other elements. Measured market net sales value sums to 91 % of total Diageo net sales value for the year ended 30 June 2026. For additional information, please see financial/legal appendix. 2. % split of reported net sales. Emerging markets include Central and Eastern Europe (excluding Benelux, Greece and Nordics) , T ürkiye, Middle East and North Africa (MENA), Latin America and Caribbean, Africa and Asia Pacific (excluding Australia, Korea an d Japan). 3. Excluding year - on - year decline in CWS net sales Excluding CWS +1.5% 3
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Organic net sales decline driven mainly by negative price/mix Preliminary Results Fiscal 26 6 Volume decline in 2 of 5 regions Price/mix mainly adverse mix (US and CWS) Net acquisitions and disposals negative given Guinness Ghana disposal (F26 H1) and Guinness Nigeria and Cîroc (NAM) last year FX net negative largely Venezuela, excluding this favour able euro and sterling Hyperinflation driven by Venezuela and Türkiye 62 62 F25 - 69 Volume - 317 Price/mix - 369 Net Acquisition & Disposals Exchange RoW - 270 * Exchange Venezuela 270 * Net Hyperinflation Adjustment 29 Other F26 20,245 19,643 - 3.0% Organic net sales decline - 2.0% / - $386m F26 reported net sales growth $m - 1.8% 0.1% Note: Net Acquisition & Disposals - F26 FY transactions included Guinness Ghana Breweries, Seychelles Breweries Limited and Sher idan’s; F25 transactions included Guinness Nigeria, Cîroc (NAM), Pampero & Safari 1.6% * Venezuela exchange and hyperinflation offsetting
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Organic operating profit growth driven by Accelerate savings Preliminary Results Fiscal 26 7 Gross Profit decline : adverse mix, cost inflation and tariffs offsetting cost efficiencies A&P: reduced development spend, efficiencies from Accelerate and reprioritisation of spend based on returns Overheads: supported by Accelerate Net a cquisitions and disposals: Guinness Ghana ( F26 H1) and Guinness Nigeria (last year) FX favourable due to Nigerian naira and Euro. Venezuelan FX impact offset by hyperinflation adjustment. Movement in operating profit pre - exceptionals $m - 0.4% 210 130 54 257 Gross Profit A&P 21 OH & OIE Acquisitions & disposals 80 * Exchange - 80 * - 6 Fair value remeasurement 5,704 - 506 467 151 - 82 134 - 86 - 99 5,683 Hyperinflation adj F26 F25 - 141bps +208bps +49bps Organic operating margin +116bps Organic operating profit +2.0% Note: F26 H1 transactions included Guinness Ghana Breweries, Seychelles Breweries Limited; F25 transactions included Guinness Ni geria, Cîroc (NAM), Pampero & Safari * Venezuela exchange and hyperinflation offsetting Accelerate
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Accelerate: $540m savings delivered through the year Preliminary Results Fiscal 26 8 • A&P and Trade Investment: reduced development costs and more efficient targeting of spend ($230m) — Procurement through consolidation driving improved rates and new contracts — Smart media buying, dynamic allocation tools and better returns • Supply Chain Agility: continued momentum ($180m) — Line utilisation rates and facility optimisation — Optimised lo gistics — Digital supply chain transformation, including Scotch Intelligence Platform (SIP) • Overheads: responding to changing business needs ($130m) — Stronger cost control across business — Headcount reductions in H1, savings delivered in H2
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Preliminary Results Fiscal 26 9 Free cash flow $m EBITDA (Post - excep ) Capex WC (ex. MS) Maturing Stock (MS) Operating Cash Flow Tax Interest Other 1 Free Cash Flow vs F25 - 417 +368 - 246 +399 +297 +47 +15 +463 Capex consistent with guidance for lower spend (F25: $1.5 billion) Disciplined and targeted investment in maturing stock Lower t ax given timing of payments and one - off items 5,636 4,531 3,211 45 31 249 - 1,181 - 817 - 752 1. Includes share of after - tax results of associates and joint ventures, dividends received, post - employment payments less amoun ts included in operating profit, and other items Strong FCF given lower capex and maturing stock Includes c.$125m S/4HANA and Middle - East one - off WC investment
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EPS growth supported by organic operating growth partly offset by lower fair value remeasurement Preliminary Results Fiscal 26 10 1. S hare buyback lapping impact 1.3 ; Associates and joint ventures 1.1 ; Tax – mainly ETR impact 1.2; Non - controlling interest - 0.9. Movement in EPS pre - exceptionals cents 5.0 2.5 2.7 Organic operating profit 3.6 * Exchange - 3.6 * - 0.3 Hyperinflation adj - 4.4 Fair Value remeasurement Other 1 Finance charges - 2.2 Acquisitions & disposals 164.2 6.1 - 3.9 165.3 - 2.2 F26 EPS pre - exceptionals F25 EPS pre - exceptionals +0.7% *Venezuela exchange and hyperinflation offsetting
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F26 significant exceptional costs Preliminary Results Fiscal 26 11 Exceptional operating charges $m Impairment charge and other related charges Mainly Türkiye goodwill, the Don Papa brand and several other smaller brands 1,489 Restructuring programmes Implementation of new operating framework Charges related to Accelerate and supply chain agility 752 156 Other items MHD Japan, Singapore, Thailand termination fees. One - off pension benefit and ongoing litigation matters in Europe 130 Total exceptional operating charges 2,527
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Leverage and finance charges Preliminary Results Fiscal 26 12 F26 F25 Movement Closing net debt 1 $m (20,482) (21,854) 1,372 Average net debt 1 $m (21,684) (21,540) (144) Net interest charge (pre - exceptional items) $m (812) (830) Net other finance charges $m (4) 1 Net pre - exceptional finance charges $m (816) (829) Effective interest rate % 3.9 4.1 (0.2) Net Debt 1 / Adjusted 2 EBITDA 3.1x 3.4x (0.3) 1. Net debt is equivalent to net borrowings and adjusted to include net debt and post employment plan benefit liabilities 2. Earnings before exceptional operating items, interest, tax, depreciation, amortisation and impairment For additional information on non - GAAP measures please see financial/legal appendix
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Preliminary Results Fiscal 26 13 Appendix
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US Spirits industry and Diageo consumption (Nielsen/NABCA) growth; Diageo US spirits shipments, depletions and consumption growth Preliminary Results Fiscal 26 14 Diageo US spirits F26 growth vs prior year US spirits Nielsen/NABCA sales Growth vs prior year 1 Industry sales Diageo sales Organic net sales Depletions sales Nielsen/NABCA sales (Diageo) 1 F26 Industry Diageo L12M L6M L3M L12M L6M L3M - 11.5 % - 9.1 % - 6.9 % - 2.0 % - 1.7 % - 1.4 % - 6.9% - 7.0% - 7.0% 1. Diageo; N/N c ombined - Nielsen 27 .06.26., NABCA 30. 06 .26
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Historic growth across regions - organic Preliminary Results Fiscal 26 15 Note: F26 FY organic growth rates adjusted for all completed acquisitions and disposals to 30 th June 2026 F25 F26 Net sales Q1 Q2 H1 Q3 Q4 H2 FY Q1 Q2 H1 Q3 Q4 H2 FY North America 2.3 (0.1) 1.0 6.9 (2.3) 2.0 1.5 (2.7) (10.4) (6.8) (9.4) (10.7) (10.1) (8.4) Europe 1.0 0.7 0.8 (0.4) 0.0 (0.2) 0.3 3.4 2.2 2.7 8.8 0.7 4.1 3.4 Asia Pacific (10.9) 5.6 (2.5) 1.6 (9.8) (4.0) (3.2) (7.5) (14.0) (11.1) (0.8) 1.2 0.1 (6.3) Latin America and Caribbean 16.0 (1.7) 5.1 28.5 5.0 15.3 9.2 10.8 (0.3) 4.5 16.2 8.1 11.9 7.7 Africa 14.3 4.9 9.0 10.1 14.2 12.3 10.5 8.9 12.7 11.0 17.1 15.1 16.0 13.3 Diageo 1.1 1.4 1.3 6.3 (1.1) 2.3 1.7 0.0 (5.2) (2.8) 0.3 (2.2) (1.0) (2.0) Price / mix 4.1 (1.0) 1.4 3.4 (2.4) 0.2 0.8 (2.8) (1.1) (1.9) (0.1) (2.5) (1.3) (1.6) Volume (3.0) 2.4 (0.1) 2.9 1.3 2.1 0.9 2.9 (4.0) (1.0) 0.4 0.3 0.3 (0.4)
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Financial/legal appendix : Definitions and reconciliation of non - GAAP measures to GAAP measures Diageo’s strategic planning process is based on certain non - GAAP measures, including organic movements . These non - GAAP measures are chosen for planning and reporting, and some of them are used for incentive purposes . The group’s management believes that these measures provide valuable additional information for users of the financial statements in understanding the group’s performance . These non - GAAP measures should be viewed as complementary to, and not replacements for, the comparable GAAP measures and reported movements therein . It is not possible to reconcile the forecast tax rate before exceptional items, forecast free cash flow, forecast effective interest rate, forecast organic net sales growth and forecast organic operating profit growth to the most comparable GAAP measure as it is not possible to predict, without unreasonable effort, with reasonable certainty, the future impact of changes in exchange rates, acquisitions and disposals and potential exceptional items . Volume Volume is a performance indicator that is measured on an equivalent units basis to nine - litre cases of spirits . An equivalent unit represents one nine - litre case of spirits, which is approximately 272 servings . A serving comprises 33 ml of spirits, 165 ml of wine, or 330 ml of ready - to - drink or beer . Therefore, to convert volume of products other than spirits to equivalent units, the following guide has been used : beer in hectolitres, divide by 0 . 9 ; wine in nine - litre cases, divide by five ; ready - to - drink and certain pre - mixed products that are classified as ready - to - drink in nine - litre cases, divide by ten . As part of the move to an asset - light beer operating model, calculation of volume for Guinness flavour extract and other concentrate sales has been amended to represent the equivalent finished goods volume . Comparatives for prior periods have been restated . Organic movements Organic information is presented using US dollar amounts on a constant currency basis excluding the impact of exceptional items, certain fair value remeasurements, hyperinflation and acquisitions and disposals . Organic measures enable users to focus on the performance of the business which is common to both years and which represents those measures that local managers are most directly able to influence . Continued on the following page 16 Preliminary Results Fiscal 26 16
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Continued from the previous page Calculation of organic movements An explanation of non - GAAP measures, including organic movements, is set out on pages 213 - 221 of Diageo’s Annual Report for the year ended 30 June 2025 . (a) Exchange rates Exchange in the organic movement calculation reflects the adjustment to recalculate the reported results as if they had been generated at the prior period weighted average exchange rates . Exchange impacts in respect of the external hedging of intergroup sales by the markets in a currency other than their functional currency and the intergroup recharging of services are also translated at prior period weighted average exchange rates and are allocated to the geographical segment to which they relate . Residual exchange impacts are reported as part of the Corporate segment . Results from hyperinflationary economies are translated at forward - looking rates . (b) Acquisitions and disposals For acquisitions in the current period, the post - acquisition results are excluded from the organic movement calculations . For acquisitions in the prior period, post - acquisition results are included in full in the prior period but are included in the organic movement calculation from the anniversary of the acquisition date in the current period . The acquisition row also eliminates the impact of transaction costs that have been charged to operating profit in the current or prior period in respect of acquisitions that, in management’s judgement, are expected to be completed . Where a business, brand, brand distribution right or agency agreement was disposed of or terminated in the reporting period, the group, in the organic movement calculations, excludes the results for that business from the current and prior period . In the calculation of operating profit, the overheads included in disposals are only those directly attributable to the businesses disposed of, and do not result from subjective judgements of management . Continued on the following page 17 Preliminary Results Fiscal 26 17
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Continued from the previous page (c) Exceptional items Exceptional items are those that in management’s judgement need to be disclosed separately . Such items are included in the income statement caption to which they relate, and form part of the segmental reporting, and are excluded from the organic movement calculations . Management believes that separate disclosure of exceptional items and the classification between operating and non - operating further helps investors to understand the performance of the group . Changes in estimates and reversals in relation to items previously recognised as exceptional are presented consistently as exceptional in the current year . Exceptional operating items are those that are unusual or non - recurring in nature, considered to be of a size that could distort performance and are part of the operating activities of the group, such as one - off global restructuring programmes which can be multi - year, impairment of intangible assets and fixed assets, indirect tax settlements, property disposals and changes in post - employment plans . Gains and losses on the sale or directly attributable to a prospective sale of businesses, brands or distribution rights, step up gains and losses that arise when an investment becomes an associate or an associate becomes a subsidiary and other unusual non - recurring items, that are considered to be of a size that could distort performance and not in respect of the production, marketing and distribution of premium drinks, are disclosed as exceptional non - operating items below operating profit in the income statement . Exceptional finance incomes/charges are those that are unusual or non - recurring in nature, considered to be of a size that could distort the performance and are part of the financing activity of the group . Exceptional current and deferred tax items comprise unusual or non - recurring items, that are considered to be of a size that could distort performance . Examples include direct tax provisions and settlements in respect of prior years and the remeasurement of deferred tax assets and liabilities following tax rate changes . (d) Fair value remeasurement Fair value remeasurements in the organic movement calculation reflect an adjustment to eliminate the impact of fair value changes in biological assets, earn - out arrangements that are accounted for as remuneration and fair value changes relating to contingent consideration liabilities and equity options that arose on acquisitions recognised in the income statement . Continued on the following page 18 Preliminary Results Fiscal 26 18
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Continued from the previous page Adjustment in respect of hyperinflation The group's experience is that hyperinflationary conditions result in price increases that include both normal pricing actions reflecting changes in demand, commodity and other input costs or considerations to drive commercial competitiveness, as well as hyperinflationary elements and that for the calculation of organic movements, the distortion from hyperinflationary elements should be excluded . Cumulative inflation over 100 % ( 2 % per month compounded) over three years is one of the key indicators within IAS 29 to assess whether an economy is deemed to be hyperinflationary . As a result, the definition of 'Organic movements' includes price growth in markets deemed to be hyperinflationary economies, up to a maximum of 2 % per month while also being on a constant currency basis . Corresponding adjustments have been made to all income statement related lines in the organic movement calculations . Shareholder value metrics • Dividends : Diageo internal information . Market share approach • All analysis of data has been applied with a tolerance of +/ - 3 bps and the descriptions applied of gaining, holding or losing share by the Company or brands are based on estimated performance within that tolerance . • Percentages represent % of markets by total Diageo net sales contribution who have held or gained total trade share in the fiscal year to date . • Measured markets indicate a market where we have purchased any market share data . • Market share data may include beer, wine, spirits or other elements . • Measured market net sales value sums to 91 % of total Diageo net sales value for the twelve months ended 30 June 2026 . 19 Preliminary Results Fiscal 26 19
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Preliminary Results Fiscal 26 20 Sonya Ghobrial Head of Investor Relations Sonya.Ghobrial@diageo.com +44 (0)7392 784 784 Andy Ryan Investor Relations Director Andrew.Ryan@diageo.com +44 (0)7803 854 842 Grace Murphy Investor Relations Director Grace.Murphy@diageo.com +44 (0)7514 726 167