Diageo has reported a declining performance in its preliminary first-half results for the six months ended on 31 December, with reported net sales decreasing by 4 per cent to £7.8bn.

The decrease was due to lower organic net sales and a negative impact of brand disposals, according to the business.

The parent company of Guinness saw its reported operating profit go down by 1.2 per cent to around £2.3bn.

The business was negatively impacted by a slower performance in North America and the adverse impact of Chinese white spirits (CWS) in the Asia Pacific.

Sir Dave Lewis CEO of Diageo said: “Our performance in the first half of fiscal 26 was mixed. Strong performance in Europe, LAC and Africa was offset by a weakening performance in NAM and continued weakness in Chinese white spirits in APAC.

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“US Spirits’ performance reflected pressure on disposable income and competitive pressure from more affordable alternatives, addressing a more stretched consumer wallet.”

Diageo has updated its guidance following the weak results within the first half to reflect a lower organic net sales and operating profit forecast.

Moving forward, the company plans to implement a new financial strategy to ensure driving better results, which includes boosting brand relevance, focusing on consumers and redesigning the business’s framework.

Last year in December, the global drinks manufacturer announced a plan to sell its major stake in East African Breweries and shares in the Kenyan spirits business, with estimated net proceeds expected to reach £1.7bn.