Diageo has released its interim results for 2025, showing improved organic sales despite a challenging environment. The company’s reported net sales declined 0.6% to $10.9 billion, largely due to unfavourable foreign exchange. However, organic net sales returned to growth, increasing by 1.0% driven by positive price/mix of 1.2pps.
Reported operating profit declined 4.9%, and the company has removed its medium-term guidance due to macroeconomic and geopolitical uncertainty. Instead, it will provide regular near-term guidance. The declared interim dividend is 40.5 cents, and the leverage ratio remains at 3.1x.
CEO Debra Crew expressed confidence in Diageo’s ability to outperform the market, citing growth in four of its five regions and market share gains. She highlighted the company’s investments in digital capabilities, supply chain, and route-to-market changes as key drivers of long-term sustainable growth.
The company has taken steps to mitigate the impact of tariffs on its US business, which could further complicate guidance. Crew thanked outgoing Chair Javier Ferrán for his dedication and welcomed new Chair Sir John Manzoni, who brings valuable experience to the role.
Source: https://www.diageo.com/en/news-and-media/press-releases/2025/2025-interim-results-half-year-ended-31-december-2024