Core Viewpoint - Diageo has cut its guidance for the year due to sales weakness in the U.S. and has reduced its dividend to fund a turnaround plan under new CEO Dave Lewis [4][5]. Group 1: Financial Performance - Diageo's shares fell by 6.2% in morning trading, making it the worst performer in the FTSE 100 index, although the stock is still up nearly 10% since the start of 2026 [4]. - The interim dividend has been set at 20 U.S. cents per share, down from 40.50 cents for the first half of fiscal 2025, with a projected dividend of at least 50 cents for fiscal 2026 [5]. - Organic net sales dropped by 2.8% year-on-year in the six months through December, which was worse than analysts' expectations of a 2% drop [8]. Group 2: Market Challenges - The North American market is facing challenges, with pressure on disposable income impacting sales [5][8]. - Diageo expects a 2% to 3% decline in organic net sales for the fiscal year 2026, revising previous expectations of flat or slightly down sales [6]. - Operating profit growth guidance has been lowered to flat to low-single-digits, down from low- to mid-single-digit expectations [7]. Group 3: Strategic Initiatives - CEO Dave Lewis aims to build a larger portfolio to revive the company's fortunes, indicating a need for time and investment to make the portfolio more competitive [4][5]. - The company is responding to changing consumer behaviors, such as the growing popularity of ready-to-drink canned cocktails, and is looking to adapt its offerings accordingly [6].