Diageo Cuts Sales Outlook, Focuses on Debt Reduction
Update: 2025-11-06
Description
Diageo, the worlds largest spirits producer, has revised its sales and profit outlook for fiscal year 2026 due to weaker demand in key markets like North America and China. The company now expects flat or slightly lower revenue and a low to mid-single-digit increase in operating profit. Diageo is focusing on cost control and asset sales to reduce its substantial debt load. Despite flat organic sales growth, volumes increased by 2.9% organically, beating analyst expectations. However, the reduced sales forecast and management succession uncertainty could impact the companys shares. Diageo remains committed to generating around three billion dollars in free cash flow in fiscal 2026 and bringing its leverage ratio back into its target range by fiscal 2028.
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