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Diageo’s established economics combine a broad branded portfolio with recurring operating cash generation and margins that historically exceeded recent reported levels. Capital spending has remained below operating cash generation, while working-capital needs and debt make cash conversion and capital allocation consequential.
For the year ended June 30, 2026, reported sales, operating income, and margin fell materially. Diageo attributed the reported-profit pressure largely to restructuring and impairment charges, while organic operating profit grew, suggesting a meaningful reported setback rather than clear evidence that the underlying margin model has permanently changed.
Whether reported operating margin recovers as exceptional restructuring and impairment charges recede while organic operating profit growth persists.
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| 12.1B | 12.2B | 12.9B | 11.8B | 16.4B | 20.9B | 20.6B | 20.3B | 20.2B | ||
| (4.7B) | (4.6B) | (4.9B) | (4.7B) | (6.5B) | (8.1B) | (8.3B) | (8.1B) | (8.1B) | (8B) | |
| 7.4B | 7.5B | 8B | 7.1B | 9.9B | 12.8B | 12.3B | 12.2B | 12.2B | 11.7B | |
| (3.8B) | (3.7B) | (3.9B) | (3.5B) | (5.1B) | (6.3B) | (6B) | (6.3B) | (7.8B) | (8.5B) | |
| (1.8B) | (1.9B) | (2B) | (1.8B) | (2.8B) | (3.7B) | (3.7B) | (3.7B) | (3.7B) | (3.2B) | |
| (2B) | (1.8B) | (1.8B) | (1.7B) | (2.3B) | (2.7B) | (2.3B) | (2.6B) | (4.2B) | (5.3B) | |
| 3.6B | 3.8B | 4.1B | 3.6B | 4.8B | 6.5B | 6.3B | 5.9B | 4.3B | ||
| 15m | 86m | 74m | (45m) | (25.7m) | 83.9m | (260m) | (451m) | (328m) | (598m) | |
| 571.6m | 531.5m | 618.4m | 661.1m | 625.5m | 631.4m | 907m | 1.1B | 761m | 793m | |
| (22m) | (128m) | 61m | (1.5B) | (1.3m) | (594.2m) | (402m) | (14m) | (162m) | 6m | |
| (35m) | (37m) | (16m) | (26m) | (24.4m) | (44.7m) | (9m) | (20m) | (308m) | — | |
| 3.6B | 3.7B | 4.2B | 2B | 4.8B | 5.9B | 5.6B | 5.5B | 3.5B | 2.6B | |
| (732m) | (950m) | (898m) | (589m) | (1.2B) | (1.4B) | (1.2B) | (1.3B) | (999m) | (606m) | |
| 2.8B | 2.8B | 3.3B | 1.5B | 3.6B | 4.5B | 4.5B | 4.2B | 2.5B | 2B | |
| (110m) | (122m) | (177m) | (45m) | (178.7m) | (120.5m) | (34m) | (296m) | (184m) | (221m) | |
| 2.7B | 3B | 3.2B | 1.4B | 3.4B | 4.4B | 4.4B | 3.9B | 2.4B | ||
| 1.05 | 1.21 | 1.30 | 0.60 | 1.46 | 1.89 | 1.96 | 1.73 | 1.06 |
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Stock intrinsic value is the real worth of a company's stock, based on its financial health and performance.
Instead of looking at the stock's current market price, which can change due to people's opinions and emotions, intrinsic value helps us understand if a stock is truly a good deal or not.
By focusing on the company's actual financial strength, like its earnings and debts, we can make better decisions about which stocks to buy and when.
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