Diageo Aide Memoire Q3 Fiscal 2026

This document sets out public information previously provided by Diageo plc, or else widely available in the market. Unless otherwise specified, the outlook comments below come from the H1 fiscal 26 press release, presentation and call script and Q3 fiscal 25 results materials, with other content sourced from publicly available information. No new information is given, and there will be no comment on current trading or further guidance provided. Any updates to these and other previously made statements would only be included in further communications by Diageo to the market and the inclusion of the extracted statements herein should not be taken to indicate that they will not be updated in the future.

Fiscal 26 outlook

With the Fiscal 26 H1 press release, we provided the following guidance for fiscal 26:

• Organic net sales growth – expect to be down 2-3% given further weakness in the US and the impact of Chinese white spirits (CWS).
  
  
• Organic operating profit growth – expect to be flat to up low-single-digit, reflecting revised net sales guidance due to the US and CWS, tariff impact ¹ and savings from the Accelerate programme.
  
  
• Taxation – expect tax rate before exceptional items to be c.25% (fiscal 25: 24.9%).
  
  
• Effective interest rate – expect effective interest rate to be c.4.0% (fiscal 25: 4.1%).
  
  
• Capital expenditure – expect to be at the lower end of the range of $1.2-1.3 billion (fiscal 25: $1.5 billion).
  
  
• Free cash flow – expect $3 billion (fiscal 25: $2.7 billion) before c.$100 million one-off working capital impact expected at the end of fiscal 26 from inventory build ahead of the SAP S/4 HANA ERP system implementation in early fiscal 27.
  
  

¹Based on assumptions as at H1 fiscal 26 results.

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