Diageo, the drinks group behind Guinness, Johnnie Walker and Smirnoff, recorded organic net sales growth of 0.6% in the three months to 30 September 2026. The result surpassed the 0.4% increase forecast by analysts in a company-compiled poll cited by Reuters.
Reported net sales climbed 1.2% year on year to $4.9bn (£3.7bn). Organic volumes rose 1.1%, also ahead of market expectations.
Latin America and the Caribbean delivered the strongest regional performance, with growth of 4.8%, followed by Asia Pacific at 4.1%. India expanded by 3.4%, while Europe, the Middle East and Africa increased by 2.4%. These results reflect varying conditions across the global food and beverage industry trends landscape, including shifting food and drink consumer trends and changing market dynamics.
North America remained the company’s main weakness. Sales in the region fell 3.6%, although the decline was narrower than the 6.7% contraction analysts had anticipated.
The first-quarter update follows the launch of chief executive Sir Dave Lewis’s wide-ranging restructuring plan. The programme aims to remove $1bn in costs over the next three years as Diageo responds to pressures affecting food manufacturing trends, food distribution trends and wider food and drink industry innovation.
The restructuring will also have a major impact on the workforce. Almost 2,000 employees had left the business in the year to 30 June 2026, with further job reductions expected as the company continues to reshape its operations.
Despite the workforce changes and challenging trading environment, Diageo maintained its full-year outlook for “broadly flat” organic growth. The company’s performance will also be influenced by developments in food and drink sustainability, food and drink regulations, food and drink packaging and food and drink marketing, all of which are increasingly important across consumer-facing industries.
Commenting on the results, chief executive Sir Dave Lewis said: “Overall, Q1 was in line with expectations, and we have reiterated our full-year guidance. We were pleased with the growth across LAC, EMEA, APAC and India.
“In North America, we continue to focus on making our offer more competitive, and whilst this remains our biggest challenge, clear actions are underway.”
He added: “Whilst the market remains challenging, and volatility continues given the geopolitical uncertainty and impact of the ongoing conflict in the Middle East on energy, supply and distribution, results in the first quarter represent a small step in the right direction.
“Growth in the quarter whilst implementing significant change is testament to the focus and commitment of Diageo colleagues, and I would like to register my sincere thanks for their support.”
