Diageo posts sales rise as North America decline slows

November 5, 2026 19:31 | News

Diageo has posted an unexpected rise in first-quarter organic net sales after a slower-than-expected decline ‌in top market North America.

Chief executive Dave Lewis called the results a step in the right direction for the world’s largest spirits maker.

Lewis, nicknamed “Drastic Dave” for his cost-cutting measures at Tesco and Unilever, joined Diageo in January and has moved to overhaul the company ‌and revive growth ‌after years ⁠of weak demand.

Diageo, maker of Johnnie Walker whisky and Guinness ​beer, posted organic net sales growth of 0.6 per cent for the three months ended September 30, compared with a 0.4 per cent decline expected by analysts in a company-compiled poll.

Bottles in the Johnnie Walker marquee at the Melbourne Cup
Growth in Johnnie Walker and ⁠Guinness in North America was negated by big falls in other brands. (Julian Smith/AAP PHOTOS)

Organic net sales declined 3.6 per cent in North America, its largest market, compared with a 6.7 per cent drop expected by analysts, with growth in ⁠Guinness and Johnnie Walker negated by double-digit declines ‌in ​the Don Julio and Casamigos tequila brands and Crown Royal whisky.

Diageo has been grappling with ​sluggish demand in ‌North America, and Lewis had pledged to restore performance in the region without sacrificing ​profits.

“Whilst the market remains challenging, and volatility continues given the geopolitical uncertainty and impact of the ongoing conflict in the Middle East on energy, supply and distribution, results ​in ​the first quarter represent a ​small step in the right direction,” Lewis said ‌in a statement.

North America remained the group’s biggest challenge, he said.

In August, Lewis laid out his strategy to cut $US1 billion ($A1.4 billion) in costs, hone focus on fast-growing categories such as Guinness and canned cocktails, and lower prices on some brands.

Diageo, which also makes Smirnoff vodka, ​Captain Morgan rum and Tanqueray gin, kept its organic net sales outlook broadly flat for ​the year.

AAP News

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