Diageo launches first phase of Accelerate program, sees $500M in cost savings

The company said, “Today we are introducing the first phase of our Accelerate programme which sets out clear cash delivery targets and a disciplined approach to operational excellence and cost efficiency. This programme will represent a shift in how we do business, moving to a more agile global operating model, and is underpinned by our strong digital and data capabilities. This simplified approach will create a stronger platform to optimise investment and allocate resources effectively towards long-term sustainable growth. This includes: Consistent cash delivery: we expect to sustainably deliver c.$3bn free cash flow per annum from fiscal 26, increasing as the business performance improves. Cost savings: c.$500m cost savings programme over three years which will enable both reinvestment in future growth and improved operating leverage. Commitment to deleveraging: we expect to be well within the leverage target range of 2.5-3.0x net debt/EBITDA no later than fiscal 28 providing us with a lot more flexibility. This will be delivered through a combination of organic growth and positive operating leverage, combined with tighter capital discipline, and appropriate and selective disposals over the coming years. We will share more details at our fiscal 25 results on 5 August 2025.”