Organic net sales declined 2.8%, driven by organic volume down 0.9% and negative price/mix of 1.9%. Strong organic net sales growth in Europe, Latin America and Caribbean (LAC) and Africa was more than offset by softer performance in North America given pressure on disposable income impacting US Spirits and the adverse impact of Chinese white spirits (CWS) in Asia Pacific, according to a report.
Reported net sales of USD 10.5 billion declined 4.0% due to organic net sales decline and the negative impact of disposals.
Net cash flow from operating activities decreased by USD 202 million to USD 2.1 billion. Free cash flow decreased by $164 million to USD 1.5 billion.
Dave Lewis, CEO, Diageo commented, "Our performance in the first half of fiscal 26 was mixed. Strong performance in Europe, LAC and Africa, was offset by a weakening performance in NAM and continued weakness in Chinese white spirits in APAC. US Spirits performance reflected pressure on disposable income, and competitive pressure from more affordable alternatives addressing a more stretched consumer wallet."