Diageo Slashes Dividend 52% as Organic Sales Dip 2%
Spirits giant Diageo cut its final dividend by over half for fiscal 2026, while organic net sales fell 2% and adjusted operating profit narrowly beat estimates. The company also guided for broadly flat sales in the near term.
Diageo reported adjusted operating profit of $5.68 billion, just above the $5.6 billion consensus. Net sales reached $19.6 billion, slightly below the expected $19.64 billion, and organic net sales declined 2%, in line with forecasts.
North America adjusted operating profit came in at $2.60 billion, missing the $2.68 billion estimate. The final dividend was slashed to 30 cents per share from 62.98 cents a year earlier.
Looking ahead, Diageo expects organic net sales to be broadly flat in fiscal 2026, with medium-term organic growth in the low single digits. The company plans around $1 billion in savings over the next three years, with restructuring charges of $0.9 billion anticipated in fiscal 2026.
Source: First Squawk