Core Insights - Diageo reported a slight decline in global net sales for the fiscal year ending June 30, 2025, with a total of $20.245 billion, down 0.1% year-on-year, but organic sales grew by 1.7%, slightly above market expectations of 1.4% [3] - The company experienced a significant drop in profits, with operating profit down 27.8% to $4.335 billion and net profit down 39.1% to $2.538 billion, leading to a decrease in earnings per share (EPS) from $1.73 to $1.06 [3][5] Financial Performance - The North American market, Diageo's largest region, saw net sales of $7.973 billion, an increase of 1.5%, while Europe recorded $4.821 billion, up 0.4%, with the UK market growing by 6.7% [7] - The Asia-Pacific region, particularly Greater China, faced a decline in organic net sales by 3.2%, with Greater China experiencing a drop from 4% in the first half to 9% for the full fiscal year [7][8] Product Category Performance - Sales of Scotch whisky and vodka faced challenges, with their net sales proportion decreasing to 76% of total revenue, while tequila and beer showed strong growth, with tequila's organic net sales up 16.9% and beer sales up 6% [8][9] - Guinness beer's success was attributed to brand building, product innovation, and global market expansion, maintaining strong growth even amid supply constraints [8] Cost Management and Strategic Adjustments - Diageo announced an increase in its cost-saving target from £500 million to £625 million over the next three years, aiming to improve profit margins and reinvest in growth areas [11] - The company is adjusting its strategic focus to cater to emerging consumer trends, particularly among Gen Z, who are shifting towards non-alcoholic beverages and ready-to-drink cocktails [13] Leadership Changes - Following the sudden departure of former CEO Debra Crew, the company is in a transitional phase, with the CFO Nik Jhangiani serving as interim CEO until a new leader is appointed by the end of October [13]