*

Reports flat organic sales growth in Q1

*

Interim CEO says US consumer environment softer than

expected

*

Flat or slightly lower sales expected for fiscal 2026

(Adds details in paragraph 1 and 7, interim CEO quotes in 3 and

5, background in 4)

Nov 6 (Reuters) - Diageo ( DEO ) trimmed its fiscal 2026

sales and profit forecast on Thursday due to weakening demand in

the United States and China, and did not announce a permanent

CEO as some hoped, leaving lingering uncertainty over who will

lead the world's top spirits maker.

The maker of Johnnie Walker whisky and Smirnoff vodka is trying

to cut costs and sell assets to help reduce its $22 billion debt

as the sector contends with cooling post-pandemic demand,

persistent weakness in key markets, tariff-related uncertainty,

and shifting consumer drinking habits.

"We are not satisfied with our current performance and are

focused on what we can manage and control," interim CEO

Nik Jhangiani said in a trading update, as the company

reported flat organic sales growth in its first quarter.

Jhangiani had earlier said he expected a decision to be made

on the permanent CEO by the end of October, following Debra

Crew's abrupt departure in July.

"We are well advanced in sharpening our strategy,

and we are developing and already implementing clear plans

to drive growth

across the broader portfolio,"

Jhangiani said on Thursday.

Diageo ( DEO ), which also owns brands including Guinness beer and

Don Julio tequila, now expects its sales to be flat to slightly

lower, and low- to mid-single-digit growth in operating profit

for its fiscal 2026.

It had earlier forecast flat organic sales and mid-single

digit operating profit growth.