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Drinks giant Diageo has cut its forecast for sales and profits in 2026, as it faces up to a slowdown in demand across North America and China.
The maker of Pimm’s, Gordon’s gin, Johnnie Walker whisky and Smirnoff vodka now expects its organic net sales growth to be flat to slightly down, while organic operating profit growth is expected to be in the low to mid-single digits.
“Net sales were flat organically in Q1, with growth in Europe, LAC and Africa offset by weakness in Chinese white spirits and a softer US consumer environment than planned for.
We are not satisfied with our current performance and are focused on what we can manage and control; acting with speed to drive efficiencies, prioritising investment and adapting more quickly to an evolving consumer environment.
“UK macro data is showing a softening economy, with increased uncertainty in the lead up to the UK Budget which is impacting the wider advertising market, and we are adjusting our costs to match this current reduction in demand.