Johnnie Walker-to-Smirnoff drinks giant Diageo today unveiled a -2.0% decline in organic net sales (-3.0% reported) to US$19,643 million for the year ended 30 June.
Growth in Europe, Latin America & Caribbean and Africa was offset by weakness in North America and Asia Pacific.
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.
Diageo Chief Executive Officer Sir Dave Lewis commented: “We are pleased with our progress in Latin America & Caribbean, Europe and Africa. We are focused on recovering our competitiveness in North America and we are working through the consequences of fovernment 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 US$0.8 billion (c.70% of the total cost of the two-year programme) with savings realised over two years starting in fiscal 27. These savings will allow us to invest in the turnaround without needing to reduce operating profit.” ✈
*Announcing The TREX Factor – Reaching B2C + B2B Audiences
The Moodie Davitt Report has launched a breakthrough crossover B2B to B2C video series focused entirely on travel retail-exclusive (TREX) products. {Click on the YouTube Icon to view TREX Travels to the Duty-Free World, the introductory video to The TREX Factor} Filmed by our acclaimed Shenzhen-based Moodie Davitt STUDIO division, the pioneering B2B and B2C crossover series is being shown in multi-lingual form (led by but not limited to Chinese and English) on the Moodie Davitt STUDIO YouTube channel and our WeChat Video platforms. EPISODE 1{Click on the YouTube icon to view Episode 1 on the Moodie Davitt STUDIO platform or here to watch on WeChat with Chinese subtitles} In our worldwide premiere, resident TREX Master Martin Moodie – the world’s leading duty-free shopping commentator and Founder of world-renowned The Moodie Davitt Report, introduces Johnnie Walker Blue Label Xordinaire, aged in former French XO Cognac casks, designed to add an element of smoothness and sweetness. Johnnie Walker Blue Label Xordinaire brings these elements together for an extraordinary finish. And, most importantly, it is a definitive TREX, available only in duty-free and travel retail stores. Click on the YouTube icon to view. EPISODE 2{Click on the YouTube icon to view Episode 2 on the Moodie Davitt STUDIO platform or here to watch on WeChat with Chinese subtitles} In our second episode, resident TREX Master Martin Moodie introduces you to two single malt whiskies from The Macallan, one of the truly famous Scotch whiskey distilleries of the world. Two very interesting variants with very different stories behind them. Click on the YouTube icon to view. EPISODE 3Our third episode features 叠川 The Chuan, which celebrates the vision of French drinks powerhouse Pernod Ricard to create a prestige Chinese malt whisky. Resident TREX Master Martin Moodie is joined on set by Rolls Wang, Retail Manager at Duty Zero by cdf, Hong Kong International Airport. EPISODE 4In this episode we taste two fine whiskies from Japan under the Misaka label – Misaka 12 Years Old Pure Malt PX Sherry Cask and Misaka 12 Years Old Mizunara Cask. Resident TREX Master Martin Moodie is joined by Hong Kong-based Australian entrepreneur, wines & spirits distributor, restaurateur, whisky aficionado and now whisky owner, Harry Kartasis, who introduced the brand to the world. Brands or retailers wishing to participate should contact Martin Moodie at Martin@MoodieDavittReport.com |
