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Diageo forecasts flat annual sales growth, raises cost-savings target
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Diageo forecasts flat annual sales growth, raises cost-savings target
Aug 4, 2025 11:25 PM

(Reuters) -Diageo ( DEO ), the world's biggest spirits maker, forecast on Tuesday fiscal 2026 organic sales growth to be similar to fiscal 2025 including the impact of U.S. tariffs, and raised its cost-savings target to about $625 million.

The maker of Johnnie Walker whisky and Smirnoff vodka is looking for a new chief and finance head to turn around its financial and share performance, and guide it through a plan announced in May to cut $500 million in costs and make substantial asset sales by 2028.

"Macroeconomic uncertainty and the resulting pressure on consumers continues to weigh on the spirits sector," Diageo said in its first set of results under interim CEO Nik Jhangiani.

Diageo ( DEO ) said it expects organic sales to fall slightly in the first half of 2026, with growth more weighted towards the second half.

(Reporting by Shashwat Awasthi; Editing by Subhranshu Sahu)

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