Core Insights - Diageo reported a decline in both organic net sales and organic operating profit by 2.8% in the first half of 2026, primarily affected by the U.S. spirits and Chinese white spirits markets [1] - Excluding the impact from Chinese white spirits, organic net sales would have decreased by approximately 0.5%, while organic operating profit would have shown about 1.5% growth [1] Financial Performance - Strong growth was observed in Europe, LAC, and Africa, but this was offset by declines in NAM and APAC markets [2] - The focus on cost savings positively impacted organic operating profit, but did not fully counterbalance the lower gross profit due to market growth mix [2] - Earnings per share (EPS) pre-exceptionals declined by 2.5%, influenced by profit decline and the impact of business disposals in Ghana and Nigeria [2] - Free cash flow for the half year was just over $1.5 billion, which is $164 million lower than the previous year due to adverse working capital movements [2] Dividend Policy - A dividend of $0.20 per share was declared, with a new dividend payout policy set at 30% to 50% [3]