UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
05 August 2025
Commission File Number: 001-10691
DIAGEO plc
(Translationof registrant’s name into English)
16 Great Marlborough Street, London, United Kingdom, W1F 7HS
(Addressof principal executive offices)
Indicateby check mark whether the registrant files or will file annualreports under cover Form 20-F or Form 40-F.
Form20-F X Form40-F
Preliminary results
Year ended 30 June 2025 | 5 August 2025 |
| Reported results | | Adjusted results(1) |
| F25 | vs F24 | | F25 | vs F24 |
Net sales | $20,245m | (0.1)% | Organic net sales movement | $338m | 1.7%(2) |
Operating profit | $4,335m | (27.8)% | Operating profit before exceptionalitems | $5,704m | (0.7)%(2) |
Operating profit margin | 21.4% | (819)bps | Operating profit margin before exceptionalitems | 28.2% | (68)bps(2) |
Net profit | $2,538m | (39.1)% | | | |
Basic earnings per share | 105.9c | (38.9)% | Basic earnings per share before exceptionalitems | 164.2c | (8.6)% |
Net cash flow from operating activities | $4,297m | $192m | Free cash flow | $2,748m | $139m |
Organic net sales growth balanced between volume andprice/mix
●Reported net sales of $20.2 billion declined 0.1% due tounfavourable foreign exchange of (0.6)% and acquisition anddisposal adjustments of (1.1)%, partially offset byhyperinflation adjustments and organic net salesgrowth.
● Organic net sales growth of 1.7% wasdriven by organic volume growth of 0.9% and positive price/mix of0.8%. Excluding the impact of the Cîroc transaction,organic net sales growth was 1.5%, with 0.8% volume growth and 0.7%price/mix.(3)
● Diageo grew or held total market share in65%(4) oftotal net sales in measured markets, including in theUS.
Gross margin expansion more than offset by investment in overheads,operating profit slightly down
●Reported operating profit declined 27.8% and reported operatingprofit margin declined 819bps, primarily due to exceptionalimpairment and restructuring costs, unfavourable foreign exchangeand a decline in organic operating margin.
● Organic operating profit declined by 0.7%;organic operating profit margin declined 68bps, mainly due tocontinued investment in overheads, partly offset by slight grossmargin expansion. Excluding the impact of the Cîroctransaction,(3) organicoperating profit declined 1.0%, in line with prior guidance,and organic operating margin declined 70bps.
●EPS pre-exceptionals was 164.2 cents, down 8.6%.
Increased cash flow, focus on reducing leverage throughAccelerate
●Net cash flow from operating activities increased by $0.2 billionto $4.3 billion. Free cash flow increased by $0.1 billion to $2.7billion.
● Net debt as at 30 June 2025 was $21.9billion, with a leverage ratio of 3.4x net debt to adjustedEBITDA,(5) inline with the guidance range of 3.3-3.5x.
●Recommended full year dividend of 103.48 cents.
Accelerate on track with savings target increased; fiscal 26outlook provided
●Firm focus on productivity, driving cash and growth. Cost savingsprogramme target increased to c.$625 million, up from c.$500million.
●In fiscal 26, expect organic sales growth to be similar to fiscal25 and organic operating profit growth to be mid-single-digit,including the impact of tariffs as at this time.
Nik Jhangiani, Interim Chief Executive commented:
I am pleased to report on our fiscal 25 results which in achallenging year, were in line with our guidance. We delivered 1.7%organic net sales growth reflecting the strength of our portfolioand our diversified footprint. While we are encouraged by areas ofprogress and the standout performance from Don Julio, Guinness andCrown Royal Blackberry, there is clearly much more to do across ourbroader portfolio and brands. We recognise the need to drivemeaningful growth opportunities in an evolving TBA landscape, andwe are sharpening our strategy to accelerate growth.
Our Accelerate programme is progressing well and is central tocreating a more agile operating model. As such, I am pleased toannounce that we are increasing our cost savings target by c.$125million, to c.$625 million over the next three years. We are alsocommitted to strengthening our balance sheet and expect to deliverc.$3 billion free cash flow in fiscal 26, increasing financialflexibility whilst continuing to invest for longer termgrowth.
While macroeconomic uncertainty and the resulting pressure onconsumers continues to weigh on the spirits sector, we believe inthe attractive long-term fundamentals of our industry and in ourability to continue to outperform as the TBA landscape evolves. Weare focused on what we can manage and control and executing atpace. The Board and management are committed to delivering improvedfinancial performance and stronger shareholder returns on asustained basis.
(1) See pages 39-46 for an explanation and reconciliation of non-GAAPmeasures.
(2) Represents organic movement.
(3) On 7 April 2025, Diageo entered into a strategic partnership withMain Street Advisors. As part of the transaction, Diageotransferred its majority ownership interest in Cîroc inNorth America in exchange for interest in Lobos 1707 Tequilaglobally. The transaction was completed in June 2025. As a result,Cîroc in North America is no longer consolidated in thegroup's financial statements and is now accounted for as aninvestment in associate.
(4) Internal estimates incorporating Nielsen, Association of CanadianDistillers, Dichter & Neira, Frontline, INTAGE, IRI, ISCAM,NABCA, State Monopolies, TRAC, IPSOS and other third-partyproviders. All analysis of data has been applied with a toleranceof +/- 3 bps and the descriptions applied of gaining, holding orlosing share by the Company or brands are based on estimatedperformance within that tolerance. Percentages represent percent ofmarkets by total Diageo net sales contribution that have held orgained total trade share in the fiscal year to date. Measuredmarkets indicate a market where we have purchased any market sharedata. Market share data may include beer, wine, spirits or otherelements. Measured market net sales value sums to 89% of totalDiageo net sales value for the twelve months ended 30 June2025.
(5) Leverage ratio calculated using adjusted net debt which is theequivalent to adjusted net borrowings (net borrowings pluspost-employment benefit liabilities before tax).
Seepages 39-46 for an explanation and reconciliation of non-GAAPmeasures, including organic net sales, organic marketinginvestment, organic operating profit, free cash flow, EPS beforeexceptional items, adjusted net debt, adjusted EBITDA and tax ratebefore exceptional items. Unless otherwise stated, movements inresults are for the year ended 30 June 2025 compared to theyear ended 30 June 2024.
Outlook
Outlook for fiscal 26
Organic net sales growth expectedto be at a similar level to fiscal 25 given a continued challengingmarket. Growth will be more weighted to the second half, withorganic net sales down slightly in the firsthalf.
Organic operating profit growth expectedto be mid-single-digit, skewed to the second half, and will besupported by cost savings from the Accelerate programme. This alsoincludes the impact of tariffs as at this time.
Taxation -we expect the tax rate before exceptional items for fiscal 26 to bec.25% (fiscal 25: 24.9%).
Effective interest rate -we expect the effective interest rate for fiscal 26 to be c.4.0%(fiscal 25: 4.1%).
Capital expenditure infiscal 26 is expected to be lower than the spend in fiscal 25 andin the range of $1.2 - $1.3 billion (fiscal 25: $1.5billion).
Free cash flow expectedto be c.$3 billion (fiscal 25: $2.7 billion). This includesexceptional cash costs related to the Accelerateprogramme.
Strategy update - ata glance
In May 2025, we launched the Accelerate programme to strengthenDiageo's foundations for long-term, sustainable growth. Phase oneis progressing well, with good momentum across markets. Theprogramme sets out clear cash delivery targets and a disciplinedapproach to operational excellence and cost efficiency. It willalso shift how we operate: creating a more agile and efficientbusiness, enabling us to optimise investment and allocate resourcesmore effectively. Collectively, we expect this to deliver bettergrowth.
Through our prioritisation tools and enhancing our data-drivenframeworks, we are focused on accelerating growth by directinginvestment to higher growth opportunities. Don Julio delivereddouble-digit growth in all regions and gained share in measuredmarkets representing >90% of net sales, Guinness delivereddouble-digit growth, and gained share in its three largest markets,while Guinness Microdraught opened new globaldistribution opportunities. In whisky, Johnnie Walker gainedshare of international whisky and scotch; with innovationimportantly supporting recruitment.
Optimising A&P spend remains a key focus, with more targetedinvestment and greater efficiency across our marketing operations.This is well underway and a key priority for the coming year. Infiscal 2025, we reduced development costs (non-working) to 14% ofA&P spend, down from 21% in fiscal 2024, leveraging ourAI-driven content production and agile ways of workings across ourmarketing function, including Agile Brand Communities, andConscious Create Teams.
Moderation is a significant growth opportunity for Diageo,particularly in an evolving TBA landscape. This is supported by ourleadership in non-alcoholic spirits, more than four times the sizeof our nearest competitor.(1) Infiscal 2025, our non-alc portfolio organic net sales grew c.40%. Weextended our non-alc leadership with the acquisition of RitualBeverage Company LLC in the US. Guinness 0.0 delivered double-digitgrowth. RTDs can also play a key role in moderation - offeringconvenience and often lower ABV options. We initiated a moretargeted strategy for RTDs in selective key RTD markets, with someencouraging early signs.
In the US, our spirits route-to-market has benefited from increasedinvestment in capability building, commercial execution andinvesting in key accounts, and we are seeing early signs ofincremental growth. We continue to optimise our supply chain, witha new manufacturing and warehouse facility announced in Montgomery,Alabama, to increase efficiency and sustainability. Additionally,in Europe, we introduced a new strategy and operating model underAccelerate, including targeted investments and more standalonemarkets. Across Diageo, we are embedding a more performance-drivenculture, focused on speed, agility, continuous improvement, andleadership accountability.
(1)RSV IWSR 2024
Dividend
The recommended final dividend for the year ended 30 June 2025, tobe proposed to shareholders for approval at the Annual GeneralMeeting to be held on 6 November 2025 is 62.98 cents per share.This will bring the recommended full year dividend to 103.48 centsper share. Subject to approval by shareholders, the final dividendwill be per share paid to holders of ordinary shares and US ADRs onthe register as at 17 October 2025. The ex-dividend date is 16October 2025 for holders of ordinary shares, and 17 October 2025for holders of US ADRs. The final dividend, once approved byshareholders, will be paid to holders of ordinary shares and USADRs on 4 December 2025. Holders of ordinary shares will receivetheir dividends in sterling unless they elect to receive theirdividends in US dollars by 7 November 2025. The dividend per sharein pence to be paid to ordinary shareholders will be announced on20 November 2025 and will be determined by the actual foreignexchange rates achieved by Diageo buying forward contracts forsterling currency, entered into during the three days preceding thesterling equivalent announcement of the interim dividend. Adividend reinvestment plan is available to holders of ordinaryshares in respect of the final dividend and the plan notice date is7 November 2025.
To view the final results document in full, please paste thefollowing URL into the address bar of yourbrowser:
http://www.rns-pdf.londonstockexchange.com/rns/9305T_1-2025-8-4.pdf
In accordance with DTR 6.3.5(1A), the final results document hasbeen submitted to the National Storage Mechanism in full uneditedtext and will shortly be available for inspection at:https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Presentation for analysts andshareholders
Pre-recorded audio webcast and presentationslides
At 07:05 (UK time) on Tuesday 5 August 2025, Nik Jhangiani, InterimChief Executive and Sonya Ghobrial, Global Head of InvestorRelations, will present Diageo's preliminary results as apre-recorded audio webcast. This will be available to view athttps://www.diageo.com/en/investors/results-reports-and-events/2025-preliminary-results.The presentation slides and script will also be available todownload.
Live Q&A conference call
Nik Jhangiani and Sonya Ghobrial will be hosting a Q&Aconference call on Tuesday 5 August 2025 at 09:30 (UKtime).
For analysts and shareholders wishing to ask questions, please usethe dial-in details below which will have a Q&Afacility.
Please dial in 15 minutes ahead of the scheduled start time toregister before the call begins.
From the UK: From the UK (free call): From the USA: From the USA (free call): Passcode: | +44 (0)20 3936 2999 0808 189 0158 +1 646 233 4753 +1 855 979 6654 341561 |
Transcript and audio recording
Following the Q&A conference call, a transcript and audiorecording will be available from the link below:
https://www.diageo.com/en/investors/results-reports-and-events/2025-preliminary-results
Calendar for future events |
6 November 2025 | Q1 F26 Trading update and AGM |
25 February 2026 | Interim results for six months ending 31 December2025 |
May 2026 | Q3 F26 Trading Update |
August 2026 | Preliminary results for year ending30 June 2026 |
Enquiries |
Investors: | Sonya Ghobrial +44 (0)7392 784784 Andy Ryan +44 (0)7803 854842 Grace Murphy +44 (0)7514 726167 investor.relations@diageo.com |
Media: | Brendan O'Grady +44 (0)7812 183750 Rebecca Perry +44 (0)7590 809101 Clare Cavana +44 (0)7751 742072 Isabel Batchelor +44 (0)7731 988857 press@diageo.com |
Diageo plc LEI: | 213800ZVIELEA55JMJ32 |
About Diageo
Diageo is a global leader in beverage alcohol with an outstandingcollection of brands across spirits and beer categories. Thesebrands include Johnnie Walker, Crown Royal, J&B andBuchanan's whiskies, Smirnoff, Ketel One, Captain Morgan, Baileys,Don Julio, Tanqueray and Guinness.
Diageo is a global company, and our products are sold in nearly 180countries around the world. The company is listed on both theLondon Stock Exchange (DGE) and the New York Stock Exchange(DEO). For more information about Diageo, our people, our brands,and performance, visit us at www.diageo.com. Visit Diageo'sglobal responsible drinking resource, www.DRINKiQ.com forinformation, initiatives, and ways to share bestpractice.
Celebrating life, every day, everywhere
SIGNATURE
Pursuantto the requirements of the Securities Exchange Act of 1934, theregistrant has duly caused this report to be signed on its behalfby the undersigned, thereunto duly authorized.
| Diageo plc |
| (Registrant) |
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Date:05 August 2025 | |
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| By:___/s/James Edmunds |
| |
| James Edmunds |
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EXHIBIT INDEX
EXHIBIT NUMBER | EXHIBITDESCRIPTION |
99.1 | |