Diageo Q1 FY2027 net sales increase 1.2% to US$4.93B
India, EMEA, Asia Pacific and Latin America recorded organic sales growth, while North America remained the company’s biggest regional challenge.
IRELAND – Diageo has reported a 1.2 per cent increase in first-quarter net sales to US$4.93 billion for fiscal 2027, as growth across international markets partly offset continued weakness in North America.
Organic net sales increased 0.6 per cent in the three months, while organic volumes grew 0.1 per cent. The figures exclude EABL, following Diageo’s agreement to sell its 65 per cent stake to Japan’s Asahi Group Holdings.
Chief Executive Officer Dave Lewis said the results were in line with expectations and the company had maintained its full-year guidance.
“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,” Lewis said.
North America remained the most challenging region, with organic net sales declining 3.6 per cent. Diageo has been facing softer demand in the region, including continued pressure on tequila sales.
“In North America, we continue to focus on making our offer more competitive, and whilst this remains our biggest challenge, clear actions are underway,” Lewis said.
Organic net sales in Europe, the Middle East and Africa (EMEA) increased 2.4 per cent. Growth in Türkiye, Africa and the Middle East offset weaker market conditions in Italy and France, with spirits and ready-to-drink (RTD) products among the key contributors.
Asia Pacific recorded 4.1 per cent organic growth, supported by double-digit expansion in global travel retail and mid-single-digit growth in Southeast Asia and North Asia. Australia and Southeast Asia performed particularly strongly, while sales of domestic and imported spirits in mainland China were flat.
In Latin America and the Caribbean (LAC), organic net sales increased 4.8 per cent. Scotch whisky and RTDs helped offset weakness in Mexico and flat sales in Brazil.
India recorded 3.4 per cent growth, led by the Prestige and Above segment, where sales rose 7.1 per cent, mainly due to vodka and Scotch whisky.
Chief Financial Officer Nik Jhangiani cited softer market conditions and weaker sales of Casamigos, Don Julio and Crown Royal. Johnnie Walker and Smirnoff RTDs, however, recorded double-digit growth.
“We remain focused on making our offer more competitive and executing the turnaround plan we shared in August,” Jhangiani said.
Guinness and RTDs remained positive growth drivers across the portfolio.
Diageo maintained its FY27 outlook, forecasting flat organic net sales growth, single-digit declines in North America and improved share performance compared with FY26.
Organic operating profit is expected to increase by low- to mid-single digits, including approximately US$850 million in cost savings under plans announced by Lewis in August 2026.
The guidance assumes US tariffs of 10 per cent on EU imports, zero per cent on UK imports, including whisky, and 50 per cent on Canadian imports, excluding bulk products.
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