Diageo ( (DEO) ) has released its Q4 earnings. Here is a breakdown of the information Diageo presented to its investors.
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Diageo is a global leader in the beverage alcohol industry, known for its diverse portfolio of iconic brands, including Johnnie Walker, Smirnoff, and Guinness, with a presence in nearly 180 countries. In its latest earnings report for the year ending June 2025, Diageo reported a slight decline in net sales by 0.1% to $20.2 billion, primarily due to unfavorable foreign exchange and acquisition adjustments. Despite these challenges, the company achieved organic net sales growth of 1.7%, driven by a balance of volume and price/mix improvements. Operating profit saw a significant drop of 27.8% due to exceptional costs and a decline in organic operating margin, while net profit decreased by 39.1% to $2.5 billion. The company maintained a strong cash flow, with net cash flow from operating activities increasing to $4.3 billion and free cash flow rising to $2.7 billion. Diageo’s strategic focus on productivity and cost savings through its Accelerate program is on track, with a revised target of $625 million in savings over the next three years. Looking ahead, Diageo expects organic sales growth in fiscal 2026 to mirror fiscal 2025 levels, with a focus on the second half of the year. The company remains committed to strengthening its balance sheet and delivering sustainable growth, despite ongoing macroeconomic uncertainties.