UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
06 May 2026
Commission File Number: 001-10691
DIAGEO plc
(Translation
of registrant’s name into English)
16 Great Marlborough Street, London, United Kingdom, W1F 7HS
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F ....X....
Form
40-F ........
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Fiscal 26 Q3 trading
statement
6 May 2026
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Strong growth in Europe, LAC and
Africa, all up at least high-single-digit, offset by weakness in
North America. Fiscal 26 guidance reiterated.
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Q3 ended 31 March 2026
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9 months ended 31 March 2026
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||||||
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Reported
F26
$m
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Reported
F25
$m
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Reported growth
YoY %
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Organic
growth
YoY %
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Reported
F26
$m
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Reported
F25
$m
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Reported growth
YoY %
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Organic
growth
YoY %
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Net sales
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4,477
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4,376
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2.3
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0.3
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14,937
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15,277
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(2.2)
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(1.9)
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Volume
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0.4
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(0.5)
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Price/mix
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-
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-
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-
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(0.1)
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-
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-
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-
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(1.4)
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●
Q3
reported net sales increased 2.3% to $4.5bn, reflecting a positive
hyperinflation adjustment, partially offset by the impact of
disposals and limited impact from foreign exchange.
●
Organic
net sales grew 0.3% in the quarter; volume +0.4% and price/mix
-0.1%.
●
Strong
organic net sales growth was delivered in Europe, LAC and Africa
with some benefit from Easter timing and advance sales ahead of the
upcoming FIFA World Cup. In North America, organic net sales
declined high-single-digit reflecting continued US Spirits
weakness. Asia Pacific net sales declined slightly with weakness in
Chinese white spirits (CWS) offsetting low-single-digit growth in
international premium spirits, and with the latter benefiting from
later timing of Chinese New Year (CNY).
●
Accelerate
programme on track to deliver c.$300m savings by end of fiscal
26.
●
USL announced the sale of its RCB business on 24
March 2026 and the disposal of our shareholding in EABL is expected
to complete in calendar H2 2026.1 These
transactions will support reducing leverage and increasing
financial flexibility.
●
Fiscal
26 guidance unchanged from fiscal 26 H1 results.
Sir Dave Lewis, Chief Executive Officer, commented:
"We are pleased with the strong growth across Europe, LAC and
Africa. North America remains our biggest challenge, where market
conditions are soft and our offer needs to be more competitive.
Actions are already underway to address this.
Progress on the re-design of our new strategy and the shaping of a
more competitive operating framework is well underway. We are on
track to share a Strategy Update with shareholders alongside our
fiscal 26 full-year results on 6 August 2026.
While we are mindful of continued geopolitical uncertainty,
including the impact of the ongoing conflict in the Middle East on
energy, supply and distribution; we are reiterating our fiscal 26
guidance."
1. United Spirits Limited (USL), Royal Challengers Bengaluru (RCB)
& East African Breweries plc (EABL).
Quarterly financials are unaudited. See pages 5-6 for an
explanation and reconciliation of non-GAAP measures. Unrounded
financials - due to rounding, the numbers in this and other tables
in this release may not always cast or calculate. Unless otherwise
noted, commentary throughout this release refers to organic net
sales movement for third quarter ended 31 March 2026 compared to
the third quarter ended 31 March 2025.
Fiscal 26 full-year outlook unchanged
from fiscal 26 H1 results:
Organic net sales - down 2-3%.
Organic operating profit growth - flat to up low-single-digit
including c.$300m savings from Accelerate and the impact of tariffs
shared previously.
Taxation - tax rate before exceptional items
c.25% (fiscal 25: 24.9%).
Effective interest rate - effective interest rate c.4.0%
(fiscal 25: 4.1%).
Capital expenditure - at the lower end
of the range of $1.2-1.3 billion
(fiscal 25: $1.5 billion).
Free cash flow - $3 billion (fiscal 25: $2.7
billion), including exceptional items related to Accelerate but
excluding c.$100 million one-off impact for inventory build at year
end to cover implementation of the SAP S/4 HANA ERP system in early
fiscal 27.
Live presentation and Q&A conference call
Sir Dave Lewis, Chief Executive Officer and Nik Jhangiani, Chief
Financial Officer will host a short presentation followed by
Q&A at 9.30am UKT (10.30am CET) on Wednesday 6 May 2026, which
can be accessed at: https://www.investis-live.com/diageo/69c268d9dc51410011ba8af8/mqlzw
For analysts and investors wishing to ask questions, please use the
dial-in details below which will have a Q&A facility. Please
dial in 15 minutes ahead of the scheduled start time to register
before the call begins.
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From
the UK:
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+44
(0)20 3936 2999
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From
the UK (free call):
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0808
189 0158
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From
the USA:
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+1
646 233 4753
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From
the USA (free call):
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+1
855 979 6654
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Access
code:
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662719
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Transcript and audio recording
Following the presentation and Q&A conference call, a
transcript and audio recording can be accessed at:
https://www.diageo.com/en/investors/results-reports-and-events/results
Presentation slides and transcript
Following the presentation, slides and a transcript will be made
available.
For further information, please contact:
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Investor relations:
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Sonya Ghobrial
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+44 (0) 7392 784 784
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Andy Ryan
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+44 (0) 7803 854 842
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Grace Murphy
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+44 (0) 7514 726 167
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investor.relations@diageo.com
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Media relations:
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Rebecca Perry
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+44 (0) 7590 809 101
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Clare Cavana
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+44 (0) 7751 742 072
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press@diageo.com
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Q3 review
Net sales, volume and price/mix for Q3 and 9 months ended 31 March
2026
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Q3 ended 31 March 2026
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Volume
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Price/mix
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|||
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Reported
F26
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Reported
F25
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Reported
growth
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Organic
growth
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Organic
growth
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Organic
Growth
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Net sales
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$m
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$m
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YoY %
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YoY %
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YoY %
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YoY %
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North America
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1,712
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1,903
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(10.0)
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(9.4)
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(9.9)
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0.5
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Europe
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1,049
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898
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16.8
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8.8
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6.3
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2.6
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Asia Pacific
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797
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803
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(0.7)
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(0.8)
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(4.6)
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3.8
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LAC
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513
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378
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35.7
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16.2
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10.5
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5.6
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Africa
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374
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369
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1.4
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17.1
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20.2
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(3.1)
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Corporate
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32
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25
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n/a
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n/a
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n/a
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n/a
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Diageo total
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4,477
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4,376
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2.3
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0.3
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0.4
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(0.1)
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9 months ended 31 March 2026
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Volume
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Price/mix
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|||
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Reported
F26
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Reported
F25
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Reported
growth
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Organic
growth
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Organic
growth
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Organic
Growth
|
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Net sales
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$m
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$m
|
YoY %
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YoY %
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|
YoY %
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YoY %
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|
|
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|
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North America
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5,502
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5,998
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(8.3)
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(7.6)
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(5.8)
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(1.8)
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Europe
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3,809
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3,530
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7.9
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4.3
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0.2
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4.1
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Asia Pacific
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2,632
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2,913
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(9.6)
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(8.2)
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(2.3)
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(5.8)
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LAC
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1,629
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1,428
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14.1
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7.7
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1.6
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6.0
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Africa
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1,247
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1,313
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(5.0)
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12.7
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11.3
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1.4
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Corporate
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118
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95
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n/a
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n/a
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n/a
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n/a
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Diageo total
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14,937
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15,277
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(2.2)
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(1.9)
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(0.5)
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(1.4)
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Quarterly financials are unaudited. Unrounded financials - due to
rounding, the numbers in this table may not always cast or
calculate.
Q3 Regional performance
North America (38% net
sales)
●
Organic net sales declined 9.4% as a result of
soft market conditions and the need for a more competitive
offer.
●
Price/mix increased 0.5%, driven by a one-off item
in Canada relating to a favourable resolution of commercial terms.
Underlying NAM price/mix was negative, largely due to adverse US
Spirits mix.
●
US Spirits organic net sales declined 15.4%,
weaker than depletions decline by c.5%. Overall net sales were
impacted by lapping tough comparatives last year due to the pre
tariff pull-forward of imports to distributors and tequila
restocking. Q3 shipments benefitted from distributor buy-in ahead
of the FIFA World Cup.Tequila declined
double-digit overall driven by tough prior year comparatives,
competitive pressure and category softness.
●
Diageo Beer Company USA net sales grew 9.1% led by
Smirnoff RTD and Guinness.
Europe (23% net
sales)
●
Organic net sales grew 8.8%, led
by Guinness in Great Britain and Ireland. Spirits growth led by
MENA, Central and Eastern Europe and
Türkiye.
●
Price/mix grew 2.6% driven by
continued strong Guinness performance with net sales up
double-digit.
●
Spirits organic net sales grew
high-single-digit, driven by strong growth in scotch led by Johnnie
Walker in MENA and Türkiye.
Asia Pacific (18% net
sales)
●
Organic net sales declined 0.8%,
driven by weakness in Greater China. Continued weakness in CWS,
which declined double-digit, more than offset low-single-digit
growth in international premium spirits in the region. The later
timing of CNY supported performance.
●
Price/mix grew 3.8% reflecting
favourable market mix which more than offset weakness from CWS.
●
In Greater China, CWS declined
double-digit, reflecting reduced consumption primarily due to
market policy, impacting the region's net sales by c.3% and group
net sales by c.0.6%. India was impacted by the Maharashtra excise
tax increase, excluding Maharashtra India grew
high-single-digit.
●
Guinness organic net sales
increased double-digit, with the transition of our beer
route-to-market to a licence brewing model driving strong organic
growth in the quarter.
Latin America and Caribbean (11% net
sales)
●
Organic net sales grew 16.2%,
with growth across most key markets and some benefit in the quarter
from buy-in ahead of the FIFA World Cup and Easter
timing.
●
Price/mix was up 5.6%, with all
markets contributing positively to this except
Mexico.
●
Brazil delivered double-digit
organic net sales growth driven by double-digit volume growth and
positive price/mix. Mexico net sales declined high-single-digit as
the business further implemented its broader portfolio
participation strategy.
●
Spirits grew double-digit led by
double-digit scotch growth driven by multiple markets. RTDs also
grew very strongly led by Smirnoff Ice in
Brazil.
Africa (8% net
sales)
●
Organic net sales grew 17.1%
driven by double-digit growth in both East Africa and South, West
and Central Africa (SWC).
●
Price/mix declined 3.1% due to
market mix.
●
In East Africa, Tanzania and
Uganda saw strong double-digit growth. Growth in SWC reflected
double-digit organic volume and net sales growth in South
Africa.
●
Double-digit growth in spirits
was led by Kenya Cane. Strong beer growth was driven by Serengeti,
and strong growth in RTDs was driven by Smirnoff Ice in South
Africa.
Appendix
Foreign exchange
We are not providing specific guidance in relation to foreign
exchange for fiscal 26. However, using the hedged rates already in
place and for other exposures the spot exchange rates at 30 April
2026, including $1=£0.74 and $1=€0.86, for fiscal 26,
would result in a positive impact on net sales of approximately $70
million and a positive impact of approximately $50 million on
operating profit. The above spot rates, currency hedges and
assumptions reflect a point in time, and may change.
Volume reporting change
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.
Explanatory notes
Comparisons are to the three and nine months ended 31 March 2026
unless otherwise stated. Unless otherwise stated, percentage
movements given throughout this document for volume and net sales
are organic movements after retranslating current period reported
numbers at prior period exchange rates and after adjusting for the
effect of exceptional operating items and acquisitions and
disposals, excluding fair value remeasurements.
This document includes names of Diageo's products which constitute
trademarks or trade names which Diageo owns or which others own and
license to Diageo for use.
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 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 33ml of spirits, 165ml of wine,
or 330ml 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.
Detailed calculation and reconciliation of non-GAAP measures can be
found in the latest Annual Report (available
at https://www.diageo.com/en/investors).
Organic net sales movement calculations for the 3 months ended 31
March 2026 were as follows:
|
Net sales
|
North America
|
Europe
|
Asia Pacific
|
LAC
|
Africa
|
Corporate
|
Diageo total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
3
months ended 31 March 2025 reported
|
1,903
|
898
|
803
|
378
|
369
|
25
|
4,376
|
|
Exchange
|
2
|
21
|
14
|
13
|
2
|
0
|
53
|
|
Reclassification
|
0
|
2
|
0
|
0
|
(2)
|
0
|
0
|
|
Disposals
|
(25)
|
(8)
|
(1)
|
(3)
|
(61)
|
0
|
(98)
|
|
Hyperinflation
|
0
|
(31)
|
0
|
(4)
|
(4)
|
0
|
(39)
|
|
3
months ended 31 March 2025 adjusted
|
1,881
|
882
|
816
|
385
|
304
|
24
|
4,292
|
|
Organic
movement
|
(177)
|
78
|
(7)
|
62
|
52
|
5
|
13
|
|
Acquisitions
& Disposals
|
6
|
5
|
0
|
2
|
7
|
0
|
20
|
|
Exchange
|
3
|
45
|
(11)
|
(115)
|
11
|
2
|
(66)
|
|
Hyperinflation
|
0
|
38
|
0
|
179
|
0
|
0
|
217
|
|
3 months ended 31 March 2026 reported
|
1,712
|
1,049
|
797
|
513
|
374
|
32
|
4,477
|
|
Organic movement %
|
(9.4)
|
8.8
|
(0.8)
|
16.2
|
17.1
|
|
0.3
|
Quarterly financials are unaudited. Unrounded financials - due to
rounding, the numbers in this table may not always cast or
calculate. The above includes the restatement of Sheridan's which
completed in Q3 fiscal 26.
About Diageo
Diageo is a global leader in beverage alcohol with an outstanding
collection of brands across spirits and beer categories. These
brands include Johnnie Walker, Crown Royal, J&B and Buchanan's
whiskies, Smirnoff and Ketel One vodkas, Captain Morgan,
Baileys, Don Julio, Tanqueray and Guinness.
Diageo is a global company, and our products are sold in nearly 180
countries around the world. The company is listed on both the
London Stock Exchange (DGE) and the New York Stock Exchange (DEO).
For more information about Diageo, our people, our brands, and
performance, visit us at www.diageo.com. Visit Diageo's global
responsible drinking resource, www.DRINKiQ.com for information,
initiatives, and ways to share best practice.
Celebrating life, every day, everywhere.
Cautionary statement concerning forward-looking
statements
This document contains 'forward-looking' statements. These
statements can be identified by the fact that they do not relate
only to historical or current facts. In particular, forward-looking
statements include all statements that express forecasts,
expectations, plans, outlook, objectives and projections with
respect to future matters, including trends in results of
operations, margins, growth rates, phasing and overall
market trends, information related to Diageo's fiscal 26
outlook and beyond, 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, and general economic conditions. 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. 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.
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.
Diageo plc LEI: 213800ZVIELEA55JMJ32
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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Diageo plc
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(Registrant)
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Date:
06 May
2026
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By:___/s/
James Edmunds
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James Edmunds
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Deputy Company Secretary
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