Diageo jumps as CEO Lewis maps out America turnaround and $8bn cash target

Diageo jumps as CEO Lewis maps out America turnaround and $8bn cash target

Retail & Consumer Food & Drink

Written by: Oliver Haill 11:43 Thu 06 Aug 2026 --> Edited by: Ian Lyall

Diageo PLC ( LSE:DGE ) View Price & Profile Diageo jumps as CEO Lewis maps out America turnaround and $8bn cash target Published: 11:43 06 Aug 2026 BST

Diageo PLC (LSE:DGE) shares jumped 6.3% to 1,744.9p after the booze maker reported higher underlying profit despite lower sales, with chief executive Dave Lewis setting out new strategic priorities for the coming three years.

Organic net sales fell 2% in the year to 30 June, with volumes down 0.4% and an unfavourable price and product mix reducing sales by 1.6%. Reported revenue declined 3% to $19.64 billion. Growth in Europe, Latin America and the Caribbean and Africa was offset by weakness in North America and Asia-Pacific.

Diageo said organic sales would have grown by around 1.5% excluding Chinese white spirits, where government policies have weighed on the market.

Organic operating profit increased 2%, while the underlying margin improved by 116 basis points to 28.9%. Cost savings more than offset the impact of tariffs and adverse sales mix.

Reported operating profit fell 27.2% to $3.16 billion, however, reflecting $900 million of restructuring charges and $1.5 billion of impairments. The latter related mainly to Türkiye, the Don Papa rum brand and several smaller brands.

Pre-exceptional earnings per share edged 0.7% higher to 165.3 cents. Free cash flow increased by $463 million to $3.21 billion, while net debt stood at $20.5 billion and leverage was 3.1 times adjusted earnings.

The full-year dividend was more than halved to 50 cents per share, down from 103.48 cents under its new payout policy.

Chief executive Sir Dave Lewis, who is also unveiling more strategic tweaks in a capital markets day in the afternoon, said Diageo was working to restore its competitiveness in North America. The group expects its restructuring programme to...