5 November 2026
If you are covering Diageo's latest financial results, please find below a comment from Chris Beckett, consumer staples analyst at Quilter Cheviot:
"As CEO Dave Lewis has acknowledged himself, Diageo is taking small steps in the right direction as it looks to arrest its slide and kickstart a much-needed turnaround. Its sales in the last quarter suggest some of the actions taken by Lewis since he joined the company are paying off, with 1.4% growth and importantly North America performing better than expected. There is tentative evidence of stabilisation.
"As with most consumer companies, emerging markets continue to much of the heavy lifting, and in Diageo's case East African Breweries which has been performing well, although that is in the process of being sold. Travel and duty free is also benefiting. North American sales have been a significant drag for the past few years, so it is pleasing to see the decline is lessening even if still present. Tequila remains the problem child for Diageo, but whisky sales have done well, highlighting the consumer desire for more premium products.
"This is early days in Diageo's turnaround, however, and there is still a very long way to go. The company is valued as if it is still in decline, and given the market likes Dave Lewis and he is a credible figure, there is perhaps some value left on the table for investors. Indeed, today's results have allowed the share price to jump at the open - although with the market feeling perky after the US midterms, a good set of results will do that. All in all, there is rightly a good degree of scepticism hanging around Diageo given so many of its problems are of its own making, but if it continues to stabilise and move past those, those green shoots of recovery may just get a bit stronger."
