Diageo reiterates fiscal 2027 outlook for broadly flat organic net sales growth
DEO•Diageo reaffirmed its fiscal 2027 outlook for broadly flat organic net sales growth and low- to mid-single-digit organic operating profit growth. It expects about $2 billion in free cash flow and reported first-quarter organic net sales growth of 1.4%.
1. Outlook reaffirmed
Diageo reaffirmed its fiscal 2027 guidance for broadly flat organic net sales growth, with organic operating profit expected to rise by a low- to mid-single-digit percentage. North American organic net sales are expected to fall mid-single digits, assuming a roughly 3% market decline.
2. Cash flow and leverage
The company forecast about $2 billion in free cash flow, including roughly $850 million in exceptional restructuring costs but excluding EABL cash. Year-end leverage is expected near the midpoint of its 2.5–3.0 times target range, assuming completion of the EABL and Royal Challengers Bengaluru transactions.
3. First-quarter sales
First-quarter organic net sales rose 1.4%, including a 0.8-percentage-point contribution from EABL.
