Diageo(US:DEO) Zhi Tong Cai Jing·2026-02-25 14:38Core Viewpoint - Diageo (DEO.US) experienced a significant pre-market drop of over 12%, closing at $89.76, following the announcement of a dividend cut and a downward revision of organic sales and profit guidance for the fiscal year ending 2026, primarily due to weak performance in the U.S. and China markets, as well as a challenging trading environment in the first half of the year [1] Group 1 - Diageo expects organic sales to decline by 2% to 3% for the fiscal year 2026, with organic operating profit anticipated to remain flat or grow in the low single digits [1] - Previous guidance had projected organic net sales to be flat to slightly down, with organic operating profit growth expected in the low to mid-single digits [1] - The board announced an interim dividend of $0.20 per share, a decrease from last year's $0.405 per share [1] Group 2 - CEO Dave Lewis stated that the board made a difficult decision to reduce the dividend to a more appropriate level, which will accelerate the strengthening of the balance sheet [1] - The company aims to enhance financial flexibility and believes this decision is the right move to ensure Diageo maintains its position as a leading international spirits company and drives stronger shareholder value in the coming years [1]