Diageo reports surge in organic net sales

Diageo posted a 5.9 percent rise in organic net sales for the third quarter ended 31st  March 2025, driven by volume growth and favourable pricing. India remained a key growth market within Asia Pacific, contributing to the company’s resilient performance despite broader economic challenges in the region.

While the broader Asia Pacific region posted modest 2% organic net sales growth, India’s performance helped offset headwinds from other areas. The region faced continued consumer downtrading and inventory destocking, particularly in Travel Retail Asia, which contributed to a 3 percent  decline in price/mix. In addition, Diageo’s transition to a licensed Guinness brewing model in Australia and New Zealand is expected to weigh on regional net sales through 2025.

Latin America and the Caribbean (LAC) emerged as Diageo’s fastest-growing region with a 29 percent surge in organic net sales. Africa also delivered solid results, with 10 percent growth in organic net sales. Strong performance was recorded in East Africa as well as South, West, and Central Africa (SWC), reflecting steady demand and distribution strength.

North America, Diageo’s largest market, posted 6 percent organic net sales growth, driven by robust US spirits shipments.  Europe’s performance was relatively flat, as double-digit growth in Guinness was offset by softness in spirits across key markets. However, positive price/mix trends continued, especially in Turkey.

Looking ahead, Diageo reaffirmed its full-year guidance for organic net sales and operating profit. The company is launching its "Accelerate" programme, aimed at achieving $3 billion in annual free cash flow from fiscal 2026 and $500 million in cost savings over three years. Diageo expects to return to its target leverage ratio by fiscal 2028, supported by organic growth and selective disposals.