New Diageo boss cuts dividend as Guinness maker’s sales slide
#Diageo #dividend cut #Sir Dave Lewis #sales decline #financial flexibility #FTSE 100 #spirits industry
📌 Key Takeaways
- Diageo cut dividend from 103.5 cents to minimum 50 cents per share
- Net sales fell 4% to $10.5 billion in final six months of 2025
- Operating profit declined 1.2% to $3.1 billion due partly to tariffs
- Sir Dave Lewis is third CEO in less than three years at the struggling company
📖 Full Retelling
Diageo's new chief executive Sir Dave Lewis announced a dividend cut for the struggling spirits company on Wednesday, February 25, 2026, amid declining sales and profits, pledging to create financial flexibility to enhance competitiveness and broaden the portfolio. The FTSE 100 giant reduced its dividend from 103.5 cents per share for its 2025 financial year to a minimum of 50 cents per year, a significant move that reflects the company's current challenges. Lewis, known for his cost-cutting reputation and nicknamed 'Drastic Dave,' explained that the board had 'taken the difficult decision to reduce the dividend to a more appropriate level' to build financial flexibility. This leadership change comes at a critical time for Diageo, which has experienced instability with its third CEO in less than three years following the departure of Debra Crew last summer amid boardroom speculation. The company reported a 4% fall in net sales to $10.5 billion for the final six months of 2025, with particular weakness in the US and China markets, while operating profit declined by 1.2% to $3.1 billion, partly attributed to tariff impacts.
🏷️ Themes
Corporate restructuring, Financial performance, Leadership changes
📚 Related People & Topics
Diageo
British multinational alcoholic beverage company
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 ...
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New Diageo boss cuts dividend as Guinness maker’s sales slide on x (opens in a new window) New Diageo boss cuts dividend as Guinness maker’s sales slide on facebook (opens in a new window) New Diageo boss cuts dividend as Guinness maker’s sales slide on linkedin (opens in a new window) New Diageo boss cuts dividend as Guinness maker’s sales slide on whatsapp (opens in a new window) Save New Diageo boss cuts dividend as Guinness maker’s sales slide on x (opens in a new window) New Diageo boss cuts dividend as Guinness maker’s sales slide on facebook (opens in a new window) New Diageo boss cuts dividend as Guinness maker’s sales slide on linkedin (opens in a new window) New Diageo boss cuts dividend as Guinness maker’s sales slide on whatsapp (opens in a new window) Save FT Reporters Published February 25 2026 Jump to comments section Print this page Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Diageo has cut its dividend and new chief executive Sir Dave Lewis pledged to “act more decisively” to turn around the struggling drinks giant as it reported sliding sales and profits. Lewis on Wednesday said the FTSE 100 company’s board had “taken the difficult decision to reduce the dividend to a more appropriate level”. He added the changes would create “financial flexibility” for Diageo “to act more decisively to enhance its competitiveness” and broaden its portfolio. Diageo cut its dividend from 103.5 cents per share for its 2025 financial year to a minimum of 50 cents per year. It came as the group reported a 4 per cent fall in net sales to $10.5bn for the final six months of 2025, amid weakness in the US and China. It said tariffs were partly responsible for a 1.2 per cent decline in operating profit, which fell to $3.1bn. Lewis, whose reputation for cost-cutting earned him the nickname “Drastic Dave”, has taken over Diageo after a tumultuous period at the maker of Guinness, Johnnie Walker an...
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