- Sales in three months to end of September flat (+0.6%) at US$4.93bn
- ‘North America’ slides 3.6%, ‘LatAm & Caribbean’ rises 4.8%
- Fiscal 2027 (to end of June next year) sales expected to be “broadly flat”, North America forecast to decline by mid-single digits
Diageo has set the pace for its fiscal 2027 by booking a flat set of sales results from the three months to the end of September – the group’s best quarterly performance since Q3 of fiscal 2025 (January to March).
Having seen its top line decline by 2% in fiscal 2026 (to the end of June), the Guinness and Johnnie Walker owner said today that its sales inched up in fiscal Q1 by 0.6% on the corresponding period a year ago. Framing the showing as “a small step in the right direction”, CEO Dave Lewis reiterated the current forecast of “broadly flat” sales for the group in fiscal 2027 (to the end of June next year).
While noting “category growth in whisky, Guinness and Smirnoff RTD”, Diageo’s results commentary leaned more on its regional performances.
The largest reporting region, ‘North America’, proved to be the main drag, with a sales decrease of 3.6%, led by the US at -3.7%. Tequilas Casamigos and Don Julio, along with Crown Royal Canadian whisky, were all down by double digits in the country during the quarter, while Guinness and the Smirnoff Ice RTD stable were in growth, also by double digits.
On the plus side, Diageo’s other four regions all delivered rises, led by ‘Latin America & Caribbean’ at +4.8%. Weakness for the tequila portfolio in its native Mexican market was balanced by “high single-digit growth in scotch across multiple markets”, led by Buchanan’s and Johnnie Walker. EMEA and Asia Pacific, meanwhile, posted 2.4 and 4.1% sales increases, respectively.
“Overall, Q1 was in line with expectations, and we have reiterated our full-year guidance,” said CEO Dave Lewis. “We were pleased with the growth across ‘Latin America & Caribbean’, ‘Europe, Middle East & Africa’, ‘Asia Pacific’ and India. In ‘North America’, we continue to focus on making our offer more competitive, and whilst this remains our biggest challenge, clear actions are underway.
“Whilst the market remains challenging, and volatility continues given the geopolitical uncertainty and impact of the ongoing conflict in the Middle East on energy, supply and distribution, results in the first quarter represent a small step in the right direction.”
Turning its attention to the rest of the current financial year, Diageo restated its forecast of a “broadly flat” sales performance for fiscal 2027, with the ‘North America’ region expected to deliver a mid-single-digit dip, “assuming the market is down circa 3%, with improving share performance compared to fiscal 2026”.
The group also said today that the divestment to Asahi of the East African Breweries business, initially announced in December last year, is on track to complete before the end of next month.
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