The Guinness brewer saw a 0.6% rise in organic net sales for the three months ending 30 September 2026, compared with the 0.4% increase expected by analysts in a company-compiled poll quoted by Reuters.
Reported net sales for the period increased by 1.2% to $4.9 billion (£3.7 billion), with organic volume growth also exceeding analyst expectations, rising by 1.1%.
Regionally, the Johnnie Walker and Smirnoff owner saw mid-single-digit growth in Latin America and the Caribbean (LAC) (4.8%) and Asia Pacific (4.1%), while India (3.4%) and Europe, Middle East and Africa (EMEA) (2.4%) posted low-single-digit growth.
North America, however, continued to prove a significant challenge for the business, which saw a 3.6% drop in the region, although this was less severe than the 6.7% decline forecast by analysts.
The news comes as chief executive Sir Dave Lewis continues to pursue his dramatic restructuring programme, having pledged to cut $1 billion of costs over the next three years.
Unfortunately for staff, this will include thousands of job cuts across the business, with close to 2,000 employees having already been let go in the year to 30 June 2026.
On a more positive note, the drinks manufacturer reiterated its full-year guidance of “broadly flat” organic growth.
Commenting on the latest results, chief executive Sir Dave Lewis 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.”
He continued: “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.
“Growth in the quarter whilst implementing significant change is testament to the focus and commitment of Diageo colleagues, and I would like to register my sincere thanks for their support.”
