Diageo reports mixed half‑year results
Diageo’s interim results show a 4% sales decline and updated strategy as Europe and Africa outperform weaker US and China markets
Print3 March 2026
Diageo, the global drinks giant behind brands such as Guinness, Johnnie Walker, Smirnoff, and Tanqueray, has reported a 4% decline in net sales for the first half of its 2026 fiscal year, highlighting the complex landscape facing the drinks industry.
The company recorded net sales of £12.6 billion for the six months ending 31 December 2025, down from £13.1 billion in the same period last year.
Fall of organic net sales
Organic net sales, which strip out the effects of acquisitions, disposals, and currency movements, fell by 2% during the period.
Despite the overall slowdown, Diageo saw strong regional performances that helped offset weaker markets.
Europe and Africa delivered robust growth, with organic net sales rising by 5%, while North America recorded a modest 1% increase.
Conversely, slower performance in China and certain international markets contributed to the overall decline in sales.
Shifts in consumer demand and pricing pressure were cited as key factors affecting sales.
CEO Dave Lewis commented: “We are navigating an increasingly complex consumer landscape.
“While some markets continue to grow, changing drinking habits, macroeconomic pressures, and competitive dynamics are creating headwinds in others.”
In terms of categories, Diageo’s whiskies and spirits performed well, particularly premium and super-premium products.
Johnnie Walker, Tanqueray, and Guinness continued to see strong engagement, driven by both on-trade and at-home consumption.
However, lower-priced segments and certain international markets lagged, reflecting shifts in consumer spending patterns and preferences.
Diageo’s results also highlighted the growing importance of non-alcoholic options and sustainability initiatives.
The company continues to invest in low- and no-alcohol alternatives, a trend that has accelerated across Europe and North America. Lewis added:
“We are seeing meaningful growth in non-alcoholic spirits and low-ABV products. These trends align with evolving consumer behaviour and provide new opportunities for our on- and off-trade partners.”
For the Irish market, the report underscores both challenges and opportunities. While Guinness remains a cornerstone of Diageo’s portfolio in Ireland, local trade operators are encouraged to continue promoting premium and responsible drinking options, particularly as consumers shift toward moderation and experience-led occasions.
Lewis concluded: “Our focus remains on premiumisation, digital innovation, and sustainable growth.
“By adapting to consumer trends and supporting our trade partners, we are confident in the long-term strength of our brands.”
Analysts note that Diageo’s H1 performance is consistent with broader industry patterns, including the rising cost of living, inflationary pressures, and increased competition from craft and local drinks brands.
The company’s investment in marketing, e-commerce, and new product development is expected to continue driving growth, especially in premium and non-alcoholic categories.
With these interim results, Diageo signals the importance of flexibility, innovation, and partnership with the drinks trade, a message that resonates for retailers, pubs, and distributors across Ireland.
Read more: Diageo appoints Dave Lewis as new CEO and executive director
© 2026, ShelfLife by Ryan Brennan
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