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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 11:45 PM

Aug 5 (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 ( DEO ) 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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