Diageo Lowers Guidance, Citing Lower China Spirit Sales

Diageo Lowers Guidance Due to Weak China Spirit Sales

Diageo has revised its fiscal 2026 outlook, citing lower spirit sales in China and a softer U.S. consumer market. The company now expects organic net sales growth to be flat or slightly negative for the fiscal year, with organic operating profit growth projected in the low to mid-single digit range.

Previously, Diageo anticipated organic net sales growth similar to fiscal 2025, when growth was 1.7%. The expected organic operating profit growth was mid-single digits.

First Quarter Fiscal 2026 Results

Reported net sales fell by 2.2% to $4.9 billion for the quarter ending September 30.
Organic volume growth increased by 2.9%, but this was countered by a negative price and mix impact of 2.8%.
The company experienced weaker-than-expected consumer demand and softer sales in the Chinese white spirits category.

"The consumer environment was weaker than expected, and we faced softer sales in the Chinese white spirits category."

Additional Information

Diageo is the producer of well-known brands such as Smirnoff vodka, Guinness beer, and Bailey's Irish Cream.

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Publication Details

November 06, 2025 02:48 ET (07:48 GMT)

Author's summary: Diageo lowers its sales outlook for fiscal 2026, driven by reduced demand in China and a weaker U.S. market, signaling challenging conditions ahead.

Morningstar — 2025-11-06

Diageo Lowers Guidance Due to Weak China Spirit Sales

First Quarter Fiscal 2026 Results

Additional Information

Publication Details

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