Diageo has reported improved first quarter results for the period ended on 30 September 2026, with net sales increasing by 1.2 per cent to approximately £3.6bn.

During the first quarter, there was positive organic growth which was partially offset by negative foreign exchange impact and the effects of disposals.

Diageo’s organic net sales increased by 0.6 per cent in the first quarter while volume fell by 0.1 per cent. The sales in Europe, the Middle East and Africa (EMEA) increased in the low single-digit range.

Diageo’s organic net sales in North America decreased by the mid-single digits, which was due to continued market softness.

Over the quarter, there was category growth across whisky, Guinness and Smirnoff RTD, with a standout performance in the spirits and RTD segment.

In the EMEA region there was double-digit growth in Johnnie Walker and mid-single-digit growth in Baileys, which offset Smirnoff and Tanqueray weakness.

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Within the beer segment, there was a low single-digit decline in Great Britain and Ireland, which was due to hotter weather and an overall competitive market.

Sir Dave Lewis, CEO of Diageo, said: “Overall, Q1 was in line with expectations, and we have reiterated our full-year guidance. We were pleased with the growth across LAC, EMEA, APAC and India.

“In North America, we continue to focus on making our offer more competitive, and whilst this remains our biggest challenge, clear actions are underway.

“Whilst the market remains challenging, and volatility continues given the geopolitical uncertainty and impact of the ongoing conflict in the Middle East on energy, supply and distribution, results in the first quarter represent a small step in the right direction.”

This reflects success within the company’s turnaround strategy, which includes mass job cuts and leaning towards the fast-growing RTD category.