Organic net sales growth balanced between volume and price\/mix<\/strong><\/p>\n Gross margin expansion more than offset by investment in overheads, operating profit slightly down<\/strong><\/p>\n Increased cash flow, focus on reducing leverage through Accelerate<\/strong><\/p>\n Accelerate on track with savings target increased; fiscal 26 outlook provided<\/strong><\/p>\n Nik Jhangiani, Interim Chief Executive commented:<\/strong><\/p>\n I am pleased to report on our fiscal 25 results which in a challenging year, were in line with our guidance. We delivered 1.7% organic net sales growth reflecting the strength of our portfolio and our diversified footprint. While we are encouraged by areas of progress and the standout performance from Don Julio, Guinness and Crown Royal Blackberry, there is clearly much more to do across our broader portfolio and brands. We recognise the need to drive meaningful growth opportunities in an evolving TBA landscape, and we are sharpening our strategy to accelerate growth.<\/p>\n Our Accelerate programme is progressing well and is central to creating a more agile operating model. As such, I am pleased to announce that we are increasing our cost savings target by c.$125 million, to c.$625 million over the next three years. We are also committed to strengthening our balance sheet and expect to deliver c.$3 billion free cash flow in fiscal 26, increasing financial flexibility whilst continuing to invest for longer term growth.<\/p>\n While macroeconomic uncertainty and the resulting pressure on consumers continues to weigh on the spirits sector, we believe in the attractive long-term fundamentals of our industry and in our ability to continue to outperform as the TBA landscape evolves. We are focused on what we can manage and control and executing at pace. The Board and management are committed to delivering improved financial performance and stronger shareholder returns on a sustained basis.<\/p>\n \n(1) See pages 39-46 for an explanation and reconciliation of non-GAAP measures. Results, reports and presentations<\/a><\/p>\n\n
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\n(2) Represents organic movement.
\n(3) On 7 April 2025, Diageo entered into a strategic partnership with Main Street Advisors. As part of the transaction, Diageo transferred its majority ownership interest in C\u00eeroc in North\u00a0America in exchange for interest in Lobos 1707 Tequila globally. The transaction was completed in June 2025. As a result, C\u00eeroc in North America is no longer consolidated in\u00a0the group\u2019s financial statements and is now accounted for as an investment in associate.
\n(4) Internal estimates incorporating Nielsen, Association of Canadian Distillers, Dichter & Neira, Frontline, INTAGE, IRI, ISCAM, NABCA, State Monopolies, TRAC, IPSOS and other third-party providers. All analysis of data has been applied with a tolerance of +\/- 3 bps and the descriptions applied of gaining, holding or losing share by the Company or brands are based on estimated performance within that tolerance. Percentages represent percent of markets by total Diageo net sales contribution that have held or gained total trade share in the fiscal year to date. Measured markets indicate a market where we have purchased any market share data. Market share data may include beer, wine, spirits or other elements. Measured market net sales value sums to 89% of total Diageo net sales value for the twelve months ended 30 June 2025.
\n(5) Leverage ratio calculated using adjusted net debt which is the equivalent to adjusted net borrowings (net borrowings plus post-employment benefit liabilities before tax).<\/p>\n