As at 14 November 2025

Executive Summary

In this report, we review the latest FY25 results for the year ended 30 June 2025.
Financial results at a glance:
•    Total group net sales for the period were down 2.2% with organic performance being flat and organic volumes growing 2.3%.
•    North American revenue (38% of net sales) was down 3.5% with organic growth and organic volumes down 2.7% and 2.1%, respectively. This was related to a negative price mix a negative US performance, and a challenging consumer environment.
•    European revenue (25% of net sales) was up 5.1% with organic growth and organic volumes up 3.5% and down 1.9%, respectively. This was driven by a positive price mix, and strong performance by Guinness.
•    Asian Pacific revenue (18% of net sales) was down 9.7% with organic performance and organic volumes down 7.5% and up 5.2%, respectively. This was driven by declines in Greater China and a negative price mix.
•    Latin American and Caribbean revenue (11% of net sales) was up 11.1% with organic growth and organic volumes up 10.9% and 6.7%, respectively. This was driven by strong growth in Brazil and a positive price mix.
•    African revenue (8% of net sales) was down 15.1% with organic growth and organic volumes up 8.9% and 10.7%, respectively. This was driven by East Africa’s performance and a negative price mix.
•    DGE also highlighted its Accelerate program that should create a more agile operating model and protect margins with a cost saving of $625 million over the next three years.

Analyst thesis

Our recommendation is based on:

•    High margin quality portfolio focused on spirits (~80% of revenue).
•    Attractive valuation levels relative to history. Trading at 30-year level lows. Organic operating profit growth is expected to be at low to mid-single digits, which provides some support against a value trap.
•    Premiumisation of core products has been a protector of organic growth across some regions.
•    Margin levels, cost, and volume pressures seem to be in a cyclically low point and position the company for upside potential in a recovery period.