Diageo cut interim dividend by more than half and lowered full-year guidance
U.S. spirits performance declined sharply with Don Julio down 20.9% and Casamigos down 30.9%
Greater China sales fell 42.3% due to policy changes affecting white spirits
Diageo expects organic net sales to decline 2-3% in fiscal 2026, down from previous guidance
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Diageo Plc, the British spirits maker whose brands include Johnnie Walker whisky and Don Julio tequila, cut its interim dividend by more than half and lowered its full-year sales and profit guidance on Wednesday, February 25, 2026, after organic net sales in North America fell 6.8% in the first half of fiscal 2026, dragging group revenues lower and raising questions about whether a recovery in its largest market is within reach, sending shares down over 6%. The company reported first-half organic net sales declined 2.8% to $10.46 billion, missing analyst consensus of a 2% decline, while organic operating profit fell 2.8%, performing better than the consensus estimate of a 3.9% drop. The interim dividend was slashed to 20 cents per share from 40.5 cents a year earlier, with the company targeting a 30-50% payout policy going forward and a minimum annual floor of 50 cents. The collapse in U.S. spirits represented the sharpest drag on results, with Don Julio tequila net sales falling 20.9% and Casamigos declining 30.9%, reflecting what the company described as 'a softer tequila category, increased competitive intensity' and consumer downtrading. Greater China compounded the damage, with net sales falling 42.3% organically, driven by a 50.4% volume decline in Chinese white spirits following market policy changes. In contrast, Europe delivered organic net sales growth of 2.7% and Africa grew 10.9%, providing some regional balance to the otherwise disappointing results. For fiscal 2026, Diageo now expects organic net sales to decline 2-3%, against prior guidance of flat to slightly down, and organic operating profit to be flat to up low-single-digit, revised from a prior forecast of low- to mid-single-digit growth. The company is proceeding with cost savings initiatives and asset sales, including a $2.3 billion deal to sell its East African Breweries stake, while CEO Sir Dave Lewis outlined three immediate priorities: building competitive category strategies, strengthening customer relationships, and redesigning the operating model, with a fuller strategic update expected in summer 2026.
Don Julio is a brand of tequila produced in Mexico. It is owned by the British-based multinational alcoholic beverage maker Diageo. It is distilled, manufactured and bottled by Tequila Don Julio, S.A. de C.V. from its corporate facility in the Colonia El Chichimeco district, in the city of Atotonilc...
Diageo plc is a British multinational alcoholic beverage company headquartered in London, England. It operates from 132 sites in nearly 180 countries. With brands such as Guinness, Johnnie Walker and Smirnoff, it is a major distributor of Scotch whisky and other spirits, with distilleries producing ...
Johnnie Walker is a brand of Scotch whisky produced by Diageo in Scotland. It was established in the Scottish burgh of Kilmarnock in 1820, and continued to be produced and bottled at the town's Hill Street plant, once the world's largest bottling plant, until its closure in 2012, a decision announce...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Gold prices rise 1% as tariff jitters aid haven demand; silver, platinum rally AMD stock surges 14% on Meta AI partnership deal Bitcoin slips, wipes out 50% from October record high at session low Wall Street ends higher on tech rebound ahead of State of the Union address (South Africa Philippines Nigeria) Diageo shares fall 6% after dividend cut, outlook slashed on U.S. spirits rout By Navamya Acharya Author Navamya Acharya Earnings Published 02/25/2026, 03:31 AM Diageo shares fall 6% after dividend cut, outlook slashed on U.S. spirits rout 0 DGE -6.18% Investing.com -- Diageo Plc cut its interim dividend by more than half and lowered its full-year sales and profit guidance on Wednesday after organic net sales in North America fell 6.8% in the first half of fiscal 2026, dragging group revenues lower and raising questions about whether a recovery in its largest market is within reach, sending shares down over 6%. Stay ahead with live news, stock impact insights and Wall Street analysis - save up to 50% The British spirits maker, whose brands include Johnnie Walker whisky and Don Julio tequila, reported first-half organic net sales declined 2.8% to $10.46 billion, missing analyst consensus of a 2% decline. Organic operating profit fell 2.8%, better than the consensus estimate of a 3.9% drop, while earnings per share before exceptional items came in at 95.3 cents against a consensus of 93.1 cents. The interim dividend was cut to 20 cents per share from 40.5 cents a year earlier. The company said it was targeting a 30-50% payout policy going forward, with a minimum annual floor of 50 cents. The collapse in U.S. Spirits was the sharpest drag on results. Don Julio tequila net sales fell 20.9% and Casamigos declined 30.9%, reflecting what the company described as "a softer tequila category, increased competitive intensity" and consumer downtrading. Diageo held or gained total market share in approximately 30% of me...
