Diageo reported first-half net sales of $10.5bn, down 2.8% on an organic basis, with volumes and average selling 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 also fell by 2.8% to $3.3bn, with lower marketing investment helping to offset the impact of higher tariff costs.
Free cash flow fell by $0.2bn to $1.5bn. Net debt remained broadly flat at $21.7bn.
Full-year guidance has been lowered again, with organic net sales now expected to decline by 2-3% (previously: flat to slightly down). Organic operating profit growth is now expected to be flat to low-single digits (previously: mid-single digits).
The interim dividend has been cut to 20 cents per share, down 51%.
The shares fell 6.2% in early trading.
Our view
HL view to follow.
Diageo key facts
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