The owner of Johnnie Walker, Smirnoff and Guinness kept its full-year guidance; in Brazil, sales were flat
Diageo, the owner of Johnnie Walker, Smirnoff and Guinness, sold 0.6% more in the first quarter of fiscal 2027, which ended on September 30, on an organic basis, which strips out currency effects and acquisitions and disposals. The figure excludes East African Breweries (EABL), the Kenyan brewer whose 65% stake Diageo has agreed to sell to Japan's Asahi, according to The Spirits Business. The company released the numbers on Thursday (November 5).
On a reported basis, net sales rose 1.2% to US$ 4.93 billion, up from US$ 4.88 billion a year earlier. Volume was practically flat (-0.1%), and the gain came from price and mix (+0.7%). Including EABL, which grew by double digits in the period, the group's organic growth reaches 1.4%.
North America remains the biggest problem: organic sales fell 3.6%, according to The Spirits Business. Chief financial officer Nik Jhangiani cited the weak market and the underperformance of Casamigos, Don Julio and Crown Royal. At the other end, Latin America and the Caribbean rose 4.8%, with Scotch and ready-to-drink products offsetting weakness in Mexico and flat sales in Brazil. Asia Pacific grew 4.1%; India, 3.4%; and Europe, the Middle East and Africa, 2.4%, with Türkiye, Africa and the Middle East offsetting weakness in Italy and France.
By category, Diageo points to growth in whisky, Guinness and Smirnoff ready-to-drinks. According to Jhangiani, Johnnie Walker and Smirnoff RTDs grew by double digits.
Results in the first quarter represent a small step in the right direction.Dave Lewis, Diageo's chief executive, in the results statement
Diageo kept its guidance for the fiscal year: broadly flat organic net sales, a mid-single-digit decline in North America, assuming a US market down about 3%, and organic operating profit up low to mid-single digits. The figure includes part of the roughly US$ 850 million in savings from the cost-cutting plan Lewis announced in August. According to The Spirits Business, the company has eliminated more than 2,000 jobs worldwide since the announcement, and workers at Cameronbridge, its largest distillery in Scotland, voted to strike in September, a strike called off on October 14 to allow talks.
Bebidário's catalog includes Johnnie Walker Black Label, Guinness Draught and Smirnoff No. 21.
Sources: Diageo (November 5, 2026), The Spirits Business (November 5, 2026).
