Diageo posts fiscal 2027 Q1 aide memoire on investor website
DEO•Diageo published its fiscal 2027 first-quarter aide memoire, reiterating its outlook for broadly flat organic net sales growth and low- to mid-single-digit organic operating profit growth. It also reaffirmed forecasts including about $2 billion in free cash flow and $1.25 billion in capital expenditure.
1. Outlook reaffirmed
Diageo reiterated its guidance for broadly flat organic net sales growth, with North America expected to decline at a mid-single-digit rate. It maintained its forecast for low- to mid-single-digit organic operating profit growth, supported by about 40% of an $850 million operating-framework savings program in the year.
2. Other forecasts
The company reaffirmed its forecast for about $2 billion in free cash flow, including about $850 million of exceptional costs tied to operating changes and a supply-chain savings program. It also reiterated plans for about $1.25 billion in capital expenditure, an effective interest rate of about 4% and a tax rate before exceptional items of about 25%.
