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 August 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
This announcement includes inside information
Preliminary results
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Year ended 30 June 2026
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6 August 2026
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Reported results
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Adjusted results(1)
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F26
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vs F25
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F26
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vs F25
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Net sales
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$19,643m
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(3.0)%
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Organic net sales movement
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$(386)m
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(2.0)%(2)
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Operating profit
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$3,156m
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(27.2)%
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Operating profit before exceptional items
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$5,683m
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2.0%(2)
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Operating profit margin
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16.1%
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(535)bps
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Operating profit margin before exceptional items
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28.9%
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116bps(2)
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Net profit
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$1,958m
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(22.9)%
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Basic
earnings per share
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78.1c
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(26.3)%
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Basic
earnings per share before exceptional items
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165.3c
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0.7%
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Net
cash flow from operating activities
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$4,392m
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$95m
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Free
cash flow
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$3,211m
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$463m
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Growth in Europe, LAC and Africa offset by weakness in North
America and Asia Pacific
● Organic
net sales declined 2.0%. Volume down 0.4% and unfavourable
price/mix 1.6%.
● Negative
price/mix primarily as a result of adverse mix due to US Spirits
performance and weaker results in CWS.
● Excluding
CWS, organic net sales for the group would have been
c.1.5% higher.
● Reported
net sales of $19.6 billion declined 3.0% mainly due to organic net
sales decline and the impact of disposals.
Operating profit growth
● Organic
operating profit increased by 2.0%, with organic operating profit
margin up 116bps, mainly due to the benefit of cost savings, partly
offset by adverse mix and tariffs.
● Reported
operating profit declined 27.2%, with organic operating profit
growth offset mostly by exceptional restructuring costs and
impairment charges. Reported operating profit margin declined
535bps.
● Eps
pre-exceptionals was 165.3 cents, up 0.7%.
Continued cash focus delivering lower leverage
● Free
cash flow increased by $463 million to
$3.2 billion.
● Net debt as at 30 June 2026 was $20.5 billion, with net debt3 to adjusted EBITDA of 3.1x.
● The
sale of East Africa Breweries PLC (EABL) remains on track to
complete in calendar H2 2026. The disposal of Royal Challengers
Bengaluru (RCB) cricket team by United Spirits Limited is
progressing as planned.
● Recommended
full year dividend of 50 cents per share, in line with the new
dividend policy announced on 25
February 2026.
2 year restructuring programme underway
● Restructuring
charges in fiscal 26 of $0.9 billion included c.$752 million costs
for the implementation of our new operating framework (representing
c.70% of the total cost) with the balance related to supply chain
agility and Accelerate costs.
● The
new operating framework will deliver c.$850 million savings over 2
years, starting in fiscal 27.
Impairment charges
● Impairment
charges of $1.5 billion related largely to Türkiye due to the
impact of hyperinflationary accounting and change in pricing in
market, as well as the write down of the Don Papa brand and certain
other smaller brands.
Sir Dave Lewis, Chief Executive
Officer commented:
We
are pleased with our progress in LAC, Europe and Africa. We are
focused on recovering our competitiveness in NAM and we are working
through the consequences of Government policy in Chinese white
spirits.
The
three priorities set out at the half year: i) Relevant brands in
competitive category strategies ii) Customer, Customer, Customer
and iii) A more agile and competitive operating framework, are
serving us well and lay the foundation for the Capital Markets Day
today.
The revised operating framework is being rolled
out across Diageo and the changes are significant. In 2026 this
change incurs a cost of $0.8 billion (c.70% of the total cost of
the two year programme) with savings realised over 2 years starting
in fiscal 27. These savings will allow us to invest in the
turnaround without needing to reduce operating
profit4.
As
we close out the year I would like to put on record our
appreciation for all Diageo colleagues and the way they have
engaged with this change programme.
(1) See
pages 34-41 for an explanation and reconciliation of
non-GAAP measures.
(2) Represents
organic movement.
(3) Leverage
ratio calculated using adjusted net debt which is the equivalent to
adjusted net borrowings (net borrowings plus post-employment
benefit liabilities
before tax).
(4) Operating profit pre-exceptional items
See pages 34-41 for an explanation and reconciliation of non-GAAP
measures, including organic net sales, organic marketing
investment, organic operating profit, free cash flow, EPS before
exceptional items, adjusted net debt, adjusted EBITDA and tax rate
before exceptional items. Unless otherwise stated, movements in
results are for the year ended
30 June 2026 compared to the year ended 30
June 2025.
Outlook
Outlook for fiscal 27
Guidance
is shared in the Capital Markets Day press release and
presentations also published today.
Strategic priorities
More detail on our strategy and progress to date is shared with the
CMD content published today.
Spirit of Progress
We
continued to deliver against our 'Spirit of Progress' ESG plan,
which sets out the actions we are taking against our three core
priorities. In fiscal 26, we made progress on the
following:
Promoting positive drinking
● On
Drink Driving, we reached our 2030 target ahead of schedule, having
delivered a total of 5.1 million educational experiences through
our programmes, marking a critical milestone in our commitment to
help prevent drink driving.
Championing inclusion and diversity
● At
the end of fiscal 26, our global leadership cohort comprised 44%
women and 46% individuals identifying as
ethnically diverse.
● We
provided 31,000 people in fiscal 26 with business and hospitality
skills training through our Learning for Life programme, supporting
and improving livelihoods all over the world.
Pioneering grain-to-glass sustainability
● We
published our Climate Transition Plan, outlining the steps we are
taking to adapt our business to the impacts of climate change,
enabling us to mitigate business risk in a rapidly evolving and
volatile world.
● We
became one of the first CPG companies to achieve a target of
replenishing more water than we use in all of our water-stressed
sites, partially mitigating our most material physical climate
risk. We achieved this by collaborating with national and local
governments, and are progressing this work across our broader
supply chain.
● We
continued to improve energy efficiency and reduce emissions in
fiscal 26. However, external factors, including availability of
energy infrastructure, supportive policy frameworks and effective
blended finance models are making the transition challenging,
impacting our ability to deliver our Scope 3 carbon targets at the
pace we had intended.
Dividend
The
recommended final dividend to be proposed to shareholders for
approval at the Annual General Meeting to be held on 5 November
2026 is 30 cents per share (fiscal 25 - 62.98 cents per
share), bringing the recommended full year dividend to 50 cents per
share (fiscal 25 - 103.48 cents per share). Subject to approval by
shareholders, this will be paid to holders of ordinary shares and
US ADRs on register as of 16 October 2026. The ex-dividend date is
15 October 2026 for holders of ordinary shares and 16 October 2026
for holders of US ADRs. Holders of ordinary shares will receive
their dividends in sterling unless they elect to receive their
dividends in US dollars by 6 November 2026. The dividend per share
in pence to be paid to ordinary shareholders will be announced on
19 November 2026 and will be determined by the actual foreign
exchange rates achieved by Diageo buying forward contracts for
sterling currency, entered into during the three trading days
preceding the sterling equivalent announcement of the final
dividend. The final dividend will be paid to both holders of
ordinary shares and US ADRs on 3 December 2026. A dividend
reinvestment plan is available to holders of ordinary shares in
respect of the final dividend and the plan notice date is 6
November 2026.
Notes to the business and financial review
Unless
otherwise stated:
● movements
in results are for the year ended 30 June 2026 compared to the year
ended 30 June 2025
● commentary
below and percentage movements refer to organic movements unless
stated as reported
● net
sales are sales after deducting
excise duties
● price/mix
is in percentage points
● market
share refers to value share
See
pages 34-41 for an explanation of the calculation and use of
non-GAAP measures.
To
view the final results document in full, please paste the following
URL into the address bar of your browser:
http://www.rns-pdf.londonstockexchange.com/rns/5920P_1-2026-8-6.pdf
In
accordance with DTR 6.3.5(1A), the final results document has been
submitted to the National Storage Mechanism in full unedited text
and will shortly be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Further details
Randall
Ingber, General Counsel and Company Secretary, is responsible for
arranging the release of this announcement on behalf of
Diageo.
Presentation for analysts and shareholders
F26 preliminary results - pre-recorded audio webcast and
presentation slides
At 11am UK on Thursday 6 August
2026, Sir Dave Lewis, Chief Executive Officer, and Nik Jhangiani,
Chief Financial Officer, will present Diageo's preliminary results
as a pre-recorded audio webcast. This will be available to view
at https://www.diageo.com/en/investors/results-reports-and-events/2026-preliminary-results
Capital Markets Day
The
Capital Markets Day will start at 1.30pm UK (2.30pm CET) and will
consist of a series of presentations. The event will be webcast for
those not attending in person, and there will also be an
opportunity to ask questions during a Q&A session at the end of
the day.
Registration
to listen to the event can be done at the following
link:
https://www.investis-live.com/diageo/6a31331eca8e91000fb4df3f/hfsua
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Calendar for future events
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5 November
2026
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Q1 F27 Trading Update and AGM
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February 2027
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Interim results for six months ending 31 December 2026
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May 2027
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Q3 F27 Trading Update
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August 2027
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Preliminary results for year ending 30 June 2027
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Enquiries
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Investors
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Sonya Ghobrial +44 (0)7392 784784
Andy Ryan +44 (0)7803 854842
Grace Murphy +44 (0)7514 726167
investor.relations@diageo.com
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Media
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Rebecca Perry +44 (0)7590 809101
Clare Cavana +44 (0)7751 742072
press@diageo.com
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Diageo plc LEI
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213800ZVIELEA55JMJ32
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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, JeB 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.
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 August 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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