Mei Ri Jing Ji Xin Wen·2026-02-26 08:15Core Viewpoint - Diageo reported a decline in organic net sales by 2.8% for the first half of fiscal year 2026, primarily due to weak performance in the U.S. spirits market and a downturn in its Chinese baijiu business, leading to a downward revision of its full-year performance guidance [1][2]. Financial Performance - Diageo's global net sales for the first half of fiscal year 2026 amounted to $10.46 billion, reflecting a 4% year-over-year decline, with an organic decline of 2.8% [1]. - The performance showed regional disparities, with strong growth in Latin America, Europe, and Africa, while the Chinese baijiu and North American markets faced significant challenges [1][2]. Regional Performance - In Europe, organic net sales reached $2.76 billion, with an organic growth of 2.7%. Turkey's whisky sales and revenue both saw growth, with Johnnie Walker achieving double-digit growth due to expanded distribution channels and increased brand exposure [1]. - Latin America and the Caribbean achieved net sales of $1.116 billion, with an organic growth of 4.5%, despite challenges from counterfeit alcohol incidents [2]. - Africa showed comprehensive growth, with net sales of $873 million and an organic growth of 10.9%, driven by ready-to-drink (RTD) beverages in South Africa and strong beer performance in Tanzania [2]. - North America reported sales of $3.79 billion, with an organic decline of 6.8%, attributed to a weak U.S. spirits market [2]. - The Asia-Pacific region experienced a year-over-year decline of approximately 11% in net sales, primarily due to weak Chinese baijiu consumption [2]. Baijiu Business and Asset Management - Diageo's baijiu business is heavily reliant on the brand Shui Jing Fang, which is projected to see a 71% decline in net profit and a 42% drop in revenue for 2025, attributed to industry cycle adjustments and strategic optimizations [3]. - In response to rumors about selling Shui Jing Fang, Diageo's management stated that the company will not sell brands at undervalued prices and emphasized that there are no active plans to divest core assets [3][4]. - Current asset disposal actions include the sale of shares in East African Breweries and a strategic review of the Bangalore Royal Challengers team by United Spirits Limited [4].