Full-year net sales came in at $19.6bn (as expected), down 2.0% organically, with volumes and prices both falling. This was driven by declines in North America and Asia Pacific, which more than offset growth in other regions.
Underlying operating profit increased 2.0% to $5.7bn ($5.6bn expected), excluding $0.9bn of restructuring charges taken over the year.
Free cash flow increased by $0.5bn to $3.2bn, while net debt decreased by $1.4bn to $20.5bn. The final dividend has been cut to 30 cents per share, down 52%.
2027 guidance points to flat organic net sales growth, with underlying operating profit to grow low-to-mid single digit.
The shares rose 6.5% following the announcement.
Our view
HL view to follow.
Diageo key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.