Diageo Plc: a £28bn business, growing, with narrowing margins.
global premium spirits and beer · global · high complexity
Deep-Dive · Company Intelligence
Report overview
Diageo's turnover barely moved in FY2025, but profit before tax fell £1.9 billion in a single year.
The story
The year, beat by beat — each one a signal from the filing, source cited. Open “the full working” on any beat for the analyst detail.
Turnover was almost identical year-on-year — the top line offers no explanation for what happened below it.
Turnover
Diageo reported £28km in turnover for FY2025, up just £73m on FY2024's £28km. Gross profit edged down £25m. The volume and pricing picture, at the very top, looks almost unchanged — which makes the collapse in operating profit the more striking.
Source · Profit & Loss Account FY2024–FY2025
Between gross profit and operating profit sits a gap that widened by £1.7 billion in one year.
Operating profit fell from £6km to £4km — a 28% drop on revenue that was essentially flat. Something between the gross margin line and the operating line consumed an extra £1.7 billion. The filing does not itemise that charge in the brief, but the arithmetic is unambiguous.
Source · Profit & Loss Account FY2025
By the time tax is paid, shareholders are left with £1.6 billion less than the previous year.
Profit after tax fell from £4km to £3km. The tax charge itself shrank — £999m versus £1km — because there was less profit to tax. Even with that partial relief, the bottom-line drop is nearly £1.6 billion in a single reporting period.
Source · Profit & Loss Account FY2025
While reported profits fell sharply, the cash balance on the balance sheet tells a very different story.
Cash rose from £1km to £2km — a 95% increase. Operating cash flow also ticked up, from £4km to £4km. Financing outflows were cut from £3km to £1km, which explains much of the cash build. The business is generating and retaining more cash even as its reported profit shrinks.
Source · Balance Sheet and Cash Flow Statement FY2025
Long-term liabilities rose £1.9 billion, but net assets also grew — the balance sheet expanded on both sides.
Long-term liabilities reached £25km, up 8% on FY2024. Current liabilities rose 9% to £11km. Fixed assets grew 5% to £32km. Net assets increased from £12km to £13km, so equity improved despite the heavier debt load.
Source · Balance Sheet FY2025
Diageo traces its roots to 1886 — but today no person of significant control is on record.
Source · Companies House PSC register; Name History
The questions you'd ask a credit analyst over coffee — answered from this company's filings, with the source for every figure.
The liquidity position looks solid.
Cash on the balance sheet stood at £2km at FY2025 year-end, up from £1km the prior year. Operating cash flow was £4km. Current liabilities are £11km, which is large, but for a business generating over £4bn of operating cash annually the near-term payment picture is supported by the numbers in this filing.
Source · Balance Sheet FY2025; Cash Flow Statement FY2025
Both — but the profit quality deteriorated sharply.
Turnover of £28km produced gross profit of £12km (a gross margin of around 43%), but operating profit was only £4km and profit after tax fell to £3km. The gap between gross profit and operating profit widened dramatically versus FY2024, suggesting a large cost or impairment charge hit the operating line this year.
Source · Profit & Loss Account FY2024–FY2025
The filing does not disclose any person of significant control.
No PSC is on record at Companies House, which for a company of this size typically indicates that no single shareholder holds 25% or more of shares or voting rights. No current directors are named in this filing either.
The filing carries a Verif-AI Compliance score of 100/100, indicating no issues with late or amended accounts identified in this report.
The company has a continuous filing history stretching back to its 1886 incorporation, with name changes properly registered at Companies House across five iterations, the most recent being the current Diageo PLC style adopted in December 1997.
Source · Verif-AI TrustScore — Compliance dimension; Name History, Companies House
The most notable signal is the divergence between flat revenue and a 28% fall in operating profit — implying a substantial charge below the gross margin line that the summary brief does not itemise.
Long-term liabilities stand at £25km against net assets of £13km, so debt comfortably exceeds equity. The Operational TrustScore dimension scores 66/100, the lowest sub-score in the filing, flagging some operational transparency gap not further specified in the brief.
Source · Profit & Loss Account FY2025; Balance Sheet FY2025; Verif-AI TrustScore
We surface gaps plainly rather than guess. Use the chapters and tabs below to dig into what is on record.
All findings are drawn from agent outputs with high confidence scores (0.85–0.97); no agents reported missing data, though the Johnnie Walker organic sales decline lacks a precise numeric value, limiting exact quantification of scotch category drag.
The filing does not disclose any person of significant control. No PSC is on record at Companies House, which for a company of this size typically indicates that no single shareholder holds 25% or more of shares or voting rights. No current directors are named in this filing either.
Origin
Diageo is the world's largest premium spirits company, selling brands including Johnnie Walker, Guinness, Smirnoff, Tanqueray, Baileys and Crown Royal in nearly 180 countries. Its registered UK holding company (SIC 70100) manages the global group.
Where the money comes from
Revenue £28bn (FY2025), up 0% YoY No segmental split disclosed in the filed accounts — this is the total trading revenue line.
At a glance
Timeline
Crisis
Ontario Premier Doug Ford staged a public protest against Diageo's decision to close the Crown Royal bottling plant in Amherstburg, threatening retaliation given the province's C$740 million annual Diageo purchases. The closure, set for February 2026, risked 180 jobs and strained Diageo's relationship with a key market.
Leadership change
Sir Ivan Menezes, who had led Diageo as CEO since July 2013, died in June 2023, prompting the appointment of Debra Crew as his successor. His decade-long tenure had seen the company significantly expand its premium spirits footprint globally.
Big year-on-year change
Turnover surged 76% — from £12.73bn to £22.45bn.
Big year-on-year change
Profit after tax surged 93% — from £1.45bn to £2.80bn.
Big year-on-year change
Profit after tax collapsed 56% — from £3.34bn to £1.45bn.
Regulatory event
Diageo agreed to pay US$5 million to settle SEC charges that it had pressured distributors to purchase products beyond demand to hit internal performance targets. The settlement highlighted governance concerns over Diageo's sales reporting practices.
Merger
Diageo sold Seagram's whiskey brand, Myers's Rum, Popov vodka, Goldschläger, and 15 other brands to the Sazerac Company for US$550 million. The divestiture was part of an ongoing portfolio rationalisation toward premium and super-premium products.
Where our data starts
Earliest analysed accounts: FY2018. 21 years of earlier trading history are not in scope — this report pulls the most recent filed accounts from Companies House.
Merger
Diageo sold the Red Stripe brand and other beer interests along with Guinness rights in certain territories to Heineken, and divested most of its wine business to Treasury Wine Estates. The moves allowed Diageo to concentrate resources on premium spirits.
Acquisition
Diageo acquired a majority stake in India's United Spirits for £1.28 billion in November 2012, securing access to the world's largest whisky market by volume. The deal gave Diageo control of leading Indian brands including McDowell's and Royal Challenge.
Regulatory event
Diageo agreed to pay more than US$16 million to settle US civil regulatory charges that it had made improper payments to foreign officials through subsidiaries to gain sales and tax benefits for Johnnie Walker and other brands. Regulators found the company had violated the US Foreign Corrupt Practices Act.
Acquisition
Diageo acquired Turkish liquor company Mey Icki for US$2.1 billion in February 2011, gaining a dominant position in the Turkish spirits market including the popular raki category. It was one of Diageo's largest acquisitions at the time.
Merger
Diageo sold the Burger King fast food chain to a consortium led by Texas Pacific Group for US$1.5 billion, completing its exit from the hospitality and food service sectors. This was a key step in its transformation into a pure-play beverages company.
Acquisition
Diageo and French drinks group Pernod Ricard jointly acquired the Canadian beverages business Seagram in May 2001, significantly expanding Diageo's spirits portfolio. To secure regulatory approval, Diageo was required to sell Malibu rum to Allied Domecq for £560 million in February 2002.
Merger
Diageo sold the Pillsbury Company to General Mills in July 2000 as part of its strategy to divest non-core assets inherited from the Grand Metropolitan merger. This helped Diageo sharpen its focus on alcoholic beverages.
Founding milestone
Diageo plc was created through the merger of Guinness plc and Grand Metropolitan plc, with shares beginning trading on the London Stock Exchange on 17 December 1997. The combined entity became one of the world's largest alcoholic beverages companies.
Name changed
Previously incorporated as Guinness PLC.
Name changed
Previously incorporated as Guinness PLC..
Name changed
Previously incorporated as Arthur Guinness And Sons PLC.
Name changed
Previously incorporated as Arthur Guinness Son And Company Limited.
Go deeper
02 · Financials
Scene 01 · Revenue
From £18.43bn in FY2018 to £27.96bn in FY2025 — a 52% increase. The most dramatic acceleration came in FY2022, when turnover surged 76% in a single year.
FY2018 – FY2025 · Companies House (PDF accounts) · hover any point for the full year
Scene 02 · Metrics
All figures in GBP (£) · as filed, not converted
Financial health
Computed from · cash · net assets · current ratio · debt to equity · total liabilities
Scene 03 · Trends
Eight years of revenue, profit and operating performance side-by-side. Hover any dot for the full year cross-section.
Revenue, profitability and operating growth over time
Scene 05 · Full detail
All metrics across FY2018–FY2025, now fully contextualised by the story above.
| Metric | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | Δ YoY |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | £18.43bn | £19.29bn | £11.75bn | £12.73bn | £22.45bn | £23.52bn | £27.89bn | £27.96bn | — 0% |
| Cost of sales | -£4.63bn | -£4.87bn | -£4.65bn | -£5.04bn | -£5.97bn | -£6.90bn | -£8.07bn | -£8.07bn | — 0% |
| Gross profit | £7.53bn | £8.00bn | £7.10bn | £7.70bn | £9.48bn | £10.21bn | £12.20bn | £12.17bn | — 0% |
| Other operating income | — | — | -£93.0m | -£26.0m | £14.0m | £34.0m | £414.0m | £193.0m | ▼ 53% |
| Administrative expenses | — | — | -£3.60bn | -£3.95bn | — | — | -£2.51bn | -£4.18bn | ▼ 67% |
| Other operating costs derived | -£3.84bn | -£3.96bn | -£1.26bn | — | -£5.08bn | -£5.62bn | -£4.11bn | -£3.85bn | — |
| Operating profit | £3.69bn | £4.04bn | £2.14bn | £3.73bn | £4.41bn | £4.63bn | £6.00bn | £4.33bn | ▼ 28% |
| Finance income | £243.0m | £442.0m | £315.0m | £243.0m | £497.0m | £340.0m | £400.0m | £480.0m | ▲ 20% |
| Finance costs | -£503.0m | -£705.0m | -£648.0m | -£591.0m | -£919.0m | -£934.0m | -£1.28bn | -£1.25bn | ▲ 3% |
| Profit before tax | £3.74bn | £4.24bn | £2.04bn | £3.71bn | £4.39bn | £4.74bn | £5.46bn | £3.54bn | ▼ 35% |
| Tax | -£596.0m | -£898.0m | -£589.0m | -£907.0m | -£1.05bn | -£970.0m | -£1.29bn | -£999.0m | ▲ 23% |
| Profit after tax | £3.14bn | £3.34bn | £1.45bn | £2.80bn | £3.34bn | £3.77bn | £4.17bn | £2.54bn | ▼ 39% |
| EBITDA (memo) | — | — | £4.24bn | £4.53bn | £5.64bn | £6.40bn | £6.84bn | £6.03bn | ▼ 12% |
| Metric | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | Δ YoY |
|---|---|---|---|---|---|---|---|---|---|
| Intangible assets | £12.57bn | £12.56bn | £11.30bn | £10.76bn | £11.90bn | £11.51bn | £14.81bn | £14.78bn | — 0% |
| Tangible assets | £4.09bn | £4.46bn | £4.93bn | £4.85bn | £5.85bn | £6.14bn | £8.51bn | £9.53bn | ▲ 12% |
| Investments | £27.04bn | £27.05bn | £61.38bn | £61.60bn | £4.04bn | £4.49bn | £5.13bn | £5.37bn | ▲ 5% |
| Total fixed assets | £21.02bn | £21.92bn | £21.84bn | £20.51bn | £23.58bn | £23.22bn | £30.35bn | £31.82bn | ▲ 5% |
| Stocks | £5.01bn | £5.47bn | £5.77bn | £6.04bn | £7.09bn | £7.66bn | £9.72bn | £10.66bn | ▲ 10% |
| Debtors | £2.68bn | £2.69bn | £2.11bn | £2.38bn | £3.27bn | £3.05bn | £3.79bn | £3.86bn | ▲ 2% |
| Cash at bank | £874.0m | £932.0m | £3.32bn | £2.75bn | £2.29bn | £1.44bn | £1.13bn | £2.20bn | ▲ 95% |
| Total current assets | £8.69bn | £9.37bn | £11.47bn | £11.45bn | £12.93bn | £12.40bn | £15.13bn | £17.50bn | ▲ 16% |
| Trade creditors | -£1.51bn | -£1.69bn | -£1.33bn | -£2.01bn | -£5.89bn | -£5.30bn | -£6.35bn | -£6.95bn | ▼ 9% |
| Bank loans (current) | — | -£1.96bn | -£2.00bn | -£1.86bn | -£1.52bn | -£1.70bn | -£2.88bn | -£2.93bn | ▼ 1% |
| Total current liabilities | £6.36bn | £7.00bn | £6.50bn | £7.14bn | £8.44bn | £7.61bn | £9.87bn | £10.71bn | ▲ 9% |
| Net current assets | -£1.27bn | -£1.51bn | -£558.0m | -£4.30bn | £4.49bn | £4.79bn | £5.26bn | £6.79bn | ▲ 29% |
| Total assets less current liabilities | — | — | £26.81bn | £24.81bn | — | — | — | — | — |
| Bank loans (non-current) | — | -£10.60bn | -£14.79bn | -£12.87bn | -£14.50bn | -£14.80bn | -£18.62bn | -£20.82bn | ▼ 12% |
| Long-term liabilities | £11.64bn | £14.14bn | £18.37bn | £16.38bn | £18.56bn | £18.71bn | £23.54bn | £25.43bn | ▲ 8% |
| Provisions | £205.0m | £205.0m | £476.0m | £412.0m | £417.0m | £362.0m | £97.0m | £223.0m | ▲ 130% |
| Net assets | £11.71bn | £10.16bn | £8.44bn | £8.43bn | £9.51bn | £9.29bn | £12.07bn | £13.18bn | ▲ 9% |
| Total equity | £11.71bn | £10.16bn | £8.44bn | £8.43bn | £9.51bn | £9.29bn | £12.07bn | £13.18bn | ▲ 9% |
| Metric | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | Δ YoY |
|---|---|---|---|---|---|---|---|---|---|
| Net cash from operating activities | £3.08bn | £3.25bn | £2.32bn | £3.65bn | £3.94bn | £3.02bn | £4.11bn | £4.30bn | ▲ 5% |
| Net cash used in investing activities | -£1.15bn | -£270.0m | — | -£1.09bn | -£1.34bn | -£1.20bn | -£1.59bn | -£1.72bn | ▼ 8% |
| Net cash used in financing activities | -£2.12bn | -£2.92bn | — | -£2.79bn | -£3.26bn | -£2.41bn | -£3.11bn | -£1.49bn | ▲ 52% |
| Net increase / (decrease) in cash | -£185.0m | £54.0m | £2.55bn | -£231.0m | -£665.0m | -£581.0m | -£596.0m | £1.08bn | swung + |
| Cash at end of year | £874.0m | £932.0m | £3.32bn | £2.75bn | £2.29bn | £1.44bn | £1.13bn | £2.20bn | ▲ 95% |
Scene 04 · Waterfall
How each cost layer eats into the top-line on the way down to profit after tax. Cascade chart coming in the next release — for now the table below shows the same flow.
FY2025 accounts · cascade view
03 · Risk
Working capital + cash
Four numbers that tell you how stretched the balance sheet is today. The line under each is in plain English — what the number means for the business, not what to do about it.
Screening status
Compliance signals
No matches identified against UK, US (OFAC), or EU sanctions lists.
No politically exposed person connections identified across UK or global PEP registers.
No matches identified against the Companies House disqualified-directors register.
Principal risks
Challenging macro and geopolitical conditions pressuring consumer wallets and confidence, particularly in the United States and China, impacting TBA industry demand.
Implementation of US tariffs (10% on UK, 15% on European imports) estimated at c.$200m unmitigated annualised impact; mitigation actions underway including supply chain optimisation.
Evolving consumer behaviours including moderation, weight-loss drugs (GLP-1s), cannabis and Gen Z consumption patterns may reduce spirits demand.
Pressured consumer wallets may slow the premiumisation trend that has driven category value growth, with scotch particularly adversely impacted.
Unfavourable exchange rate movements (e.g. Mexican peso, Turkish lira, Brazilian real) adversely impact reported results; transaction and translation exposures are material.
Governance & subsequent events
Debra Crew stepped down as Chief Executive and Board Director; Nik Jhangiani appointed Interim Chief Executive.
Deirdre Mahlan agreed to rejoin Diageo as Interim Chief Financial Officer.
Randall Ingber re-joined Diageo as General Counsel, succeeding Tom Shropshire, and will take over as Company Secretary from start of fiscal 26.
Final dividend of 62.98 cents per share recommended, payable 4 December 2025 to shareholders on register as of 17 October 2025 (subject to shareholder approval).
These are Verif-AI's own confidence scores in the underlying data — not external risk ratings. Each dimension reflects how complete and self-consistent the filed numbers were on extraction.
04 · Market
Industry classification
Professional, scientific & technical
Companies House records the SIC2007 classification for this entity under 1 code: 70100.
Peer cohort · Division 70 · Head Offices & Consultancy · 46 peers
Sector cohort · 46 peers · Head Offices & Consultancy
| Metric | This filing | Peer median | Percentile | Assessment |
|---|---|---|---|---|
| Cash Ratio | 0.21 | 0.25 | 45th | below median |
| Profit Margin (%) | 12.6% | 7.3% | 70th | above median |
| Quick Ratio | 0.57 | 0.55 | 53th | above median |
| Gross Margin (%) | 43.5% | 32.8% | 65th | above median |
| Current Ratio | 0.57 | 0.87 | 29th | below median |
| Cash-to-Assets | 0.06 | 0.06 | 50th | above median |
| Debt-to-Assets | 0.95 | 0.71 | 75th | weak |
| Debt-to-Equity | 2.74 | 1.35 | 76th | weak |
| Net Assets Growth (%) | 9.2% | -0.3% | 72th | above median |
05 · People
Every named director was cross-checked against the full UK Companies House appointments dataset (27.8 million records). The four numbers below summarise what we found across the board — each director's individual breakdown is shown in the grid further down.
Each director, individually
| Role | Director | Career boards | Concurrent | Prior-failure rate | Joined | Other UK boards |
|---|---|---|---|---|---|---|
| Director |
Susan Saltzbart Kilsby
American · Switzerland
|
2 | — | — | 5 May 2016 | |
|
Susan Saltzbart Kilsby 1 other UK board they sit onClick + Deep Dive to add a company to your basket. Bundle pricing: 1 = £9.99 · 2 = £15.99 · 3 = £20.99 · then +£4 each. Goldman Sachs International No. 02263951 |
||||||
| Director |
Lady Melissa Bethell
British · England
|
12 | 11 busy | 0.0% | 1 July 2018 | |
|
Lady Melissa Bethell 9 other UK boards they sit onClick + Deep Dive to add a company to your basket. Bundle pricing: 1 = £9.99 · 2 = £15.99 · 3 = £20.99 · then +£4 each. Tesco PLC No. 00445790 Sadler's Wells Development Trust No. 01031348 Sadler's Wells Limited No. 02907116 Sadler's Wells Trust Limited No. 01488786 Atoll Midco Ltd No. 14073891 Atoll Debtco Ltd No. 14074113 Atoll Holdco Ltd. No. FC040033 Ocean Bidco Limited No. 08038055 ST Mary's School Ascot No. 01844327 |
||||||
| Director · active |
John Alexander Manzoni
British · United Kingdom
|
1 | — | — | 1 October 2020 | — |
| Director · active |
Ireena Vittal
Indian · India
|
1 | — | — | 2 October 2020 | — |
| Director · active |
Valerie Marie Anne Chapoulaud-Floquet
French · Italy
|
1 | — | — | 1 January 2021 | — |
| Director · active |
Karen Tracey Blackett
British · United Kingdom
|
1 | — | — | 1 June 2022 | — |
| Director |
David John Lewis
British · United Kingdom
|
4 | 3 | 0.0% | 26 April 2023 | |
|
David John Lewis 3 other UK boards they sit onClick + Deep Dive to add a company to your basket. Bundle pricing: 1 = £9.99 · 2 = £15.99 · 3 = £20.99 · then +£4 each. Xlinks First Limited No. 13604828 Princess Of Wales Memorial Fund Trustee Company The Diana No. 05516463 THE Royal Foundation Of The Prince And Princess Of Wales No. 07033553 |
||||||
| Director · active |
Manik Hiru Jhangiani
British, American · England
|
2 | 2 | — | 1 September 2024 | |
|
Manik Hiru Jhangiani 1 other UK board they sit onClick + Deep Dive to add a company to your basket. Bundle pricing: 1 = £9.99 · 2 = £15.99 · 3 = £20.99 · then +£4 each. Tate Foundation No. 04009652 |
||||||
| Director · active |
Julie Belita Brown
British · United Kingdom
|
1 | — | — | 5 August 2024 | — |
Co-director network
People who share at least one other UK directorship with someone on this board. Sorted by overlap count. Click any shared boards chip to reveal the companies they overlap on.
06 · AI Investigation
AI forensic pass across 0 Companies House filings. 33 page-cited signals from three specialist agents, 3 cross-signal correlations, and 4 verification questions for management — every claim traces back to a filing reference.
AI Analyst commentary
Narrator-written context blocks — what an analyst would read in 90 seconds and walk away with the picture.
Net assets grew to £13.18bn (+9.2%), which looks encouraging — but total liabilities now exceed £36bn (£10.7bn current + £25.4bn long-term). Fixed assets of £31.8bn are largely intangible or brand-based, meaning the balance sheet is asset-heavy but not easily liquidated.
Diageo PLC is a publicly listed company — director and governance detail is disclosed via LSE/SEC filings beyond the Companies House extract reviewed here. SIC code 70100 confirms this is a holding company entity — executive operational control sits across the wider group structure.
Listed PLC with no single controlling shareholder — institutional ownership (Vanguard and peers) is the norm for a London and New York dual-listed business of this scale. No PSC registered — correct and expected for a widely-held public company; ownership transparency is via regulatory shareholder disclosure requirements, not the PSC regime.
Case files · Chapter dossier
The investigation as one running thread — each beat resolves a signal cluster, page-cited. Open “the full working” on any beat for the forensic detail.
Turnover was almost identical year-on-year — the top line offers no explanation for what happened below it.
Turnover
Diageo reported £28km in turnover for FY2025, up just £73m on FY2024's £28km. Gross profit edged down £25m. The volume and pricing picture, at the very top, looks almost unchanged — which makes the collapse in operating profit the more striking.
Source · Profit & Loss Account FY2024–FY2025
Between gross profit and operating profit sits a gap that widened by £1.7 billion in one year.
Operating profit fell from £6km to £4km — a 28% drop on revenue that was essentially flat. Something between the gross margin line and the operating line consumed an extra £1.7 billion. The filing does not itemise that charge in the brief, but the arithmetic is unambiguous.
Source · Profit & Loss Account FY2025
By the time tax is paid, shareholders are left with £1.6 billion less than the previous year.
Profit after tax fell from £4km to £3km. The tax charge itself shrank — £999m versus £1km — because there was less profit to tax. Even with that partial relief, the bottom-line drop is nearly £1.6 billion in a single reporting period.
Source · Profit & Loss Account FY2025
While reported profits fell sharply, the cash balance on the balance sheet tells a very different story.
Cash rose from £1km to £2km — a 95% increase. Operating cash flow also ticked up, from £4km to £4km. Financing outflows were cut from £3km to £1km, which explains much of the cash build. The business is generating and retaining more cash even as its reported profit shrinks.
Source · Balance Sheet and Cash Flow Statement FY2025
Long-term liabilities rose £1.9 billion, but net assets also grew — the balance sheet expanded on both sides.
Long-term liabilities reached £25km, up 8% on FY2024. Current liabilities rose 9% to £11km. Fixed assets grew 5% to £32km. Net assets increased from £12km to £13km, so equity improved despite the heavier debt load.
Source · Balance Sheet FY2025
Diageo traces its roots to 1886 — but today no person of significant control is on record.
Source · Companies House PSC register; Name History
Cross-signal intelligence
Pairs of facts from different chapters that — taken together — tell a story neither half does alone. This is where investigation outperforms summary.
↔ Cross-reference
The 95% cash build in [chapter 4] coincides with financing outflows being halved — suggesting Diageo returned less capital to lenders or shareholders in FY2025 rather than generating materially more from operations.
Operating profit fell £1.7 billion in [chapter 2] while operating cash flow actually rose £192m in [chapter 4] — a divergence that points to a significant non-cash charge (such as an impairment or write-down) sitting between the two figures.
The 8% rise in long-term liabilities noted in [chapter 5] sits alongside the 5% growth in fixed assets — both sides of the balance sheet expanded, keeping net assets positive and growing despite the profit drop visible in [chapter 3].
Deep signals
Specifics most readers would miss — surfaced by the AI for the analyst who wants to know.
A step-change of this size is consistent with a major acquisition, a portfolio revaluation, or the recognition of previously off-balance-sheet assets. The absence of a disclosed explanation in the extracted data means the nature of these assets — and how easily they could be realised — cannot be confirmed from these accounts alone.
Consistent with a business drawing down working capital — collecting receivables faster, or extending supplier payment terms — rather than purely organic cash generation. It may also reflect non-cash charges (depreciation, amortisation of intangibles) being added back. Either way, the cash quality appears real, but the gap between profit and cash flow is worth understanding in context.
Consistent with the market power of a £28bn revenue business — Diageo can demand extended payment terms from suppliers. This is a structural advantage, not a distress signal, but it does mean that any change in supplier willingness to extend terms would require significant alternative funding.
Forensic investigation · 33 signals
Segmental revenue · capital structure · strategic KPIs. Each agent cites the exact filing page for every claim, with an AI confidence score derived from cross-citation strength.
Segmental Analysis
North America operating profit before exceptionals was $3,053m out of total group $5,704m in 2025, representing 53.5% of the group total. In 2024 it was $3,236m out of $5,945m (54.4%).
p.156 · 8 more from this specialist
Strategic KPIs
Reported operating profit dropped from $6,001m to $4,335m, a 27.8% fall; organic operating profit fell 0.7% with organic operating margin at 28.0% (down 68 basis points).
p.6, p.16, p.21 · 12 more from this specialist
Capital Structure & Borrowings
Net borrowings at 30 June 2025 were $21,854m, up from $21,017m a year earlier. The company targets a net debt to adjusted EBITDA ratio of 2.5-3.0x; actual ratio is 3.4x.
p.34, p.192 · 10 more from this specialist
North America operating profit before exceptionals was $3,053m out of total group $5,704m in 2025, representing 53.5% of the group total. In 2024 it was $3,236m out of $5,945m (54.4%).
Why it matters: More than half of group profits come from one region, so any downturn in North America — such as from trade policy changes or consumer shifts — could hit the whole group hard.
p.156 critical conf 95%
Group operating profit before exceptional items was $5,704m in 2025. After exceptional charges of $1,369m, reported operating profit was $4,335m. In 2024, the exceptional credit was $56m, giving reported operating profit of $6,001m.
Why it matters: A large chunk of profit disappeared due to one-off charges in 2025 — investors need to understand whether these are truly one-off or a sign of deeper problems, especially given impairments of intangible assets and associates totalling $796m.
p.156, p.157 critical conf 97%
North America generated $8,636m in sales in 2025 (31% of group total $27,964m) vs $8,514m in 2024. Operating profit before exceptional items was $3,053m (2024: $3,236m), a drop of $183m or 5.7%.
Why it matters: The group's biggest region is shrinking in profit terms, which puts pressure on overall group earnings unless other regions pick up the slack.
p.156 important conf 95%
Asia Pacific sales dropped from $6,320m in 2024 to $6,082m in 2025, a fall of $238m. Operating profit before exceptional items also fell from $1,063m to $930m, a drop of $133m or 12.5%.
Why it matters: Asia Pacific is the third-largest region and its profits are falling notably, suggesting demand weakness or pricing pressure in key Asian markets.
p.156 important conf 95%
Spirits sales were $22,166m in 2025 out of total group sales of $27,964m (79.3%). Beer was $4,493m (16.1%), Ready-to-drink $989m (3.5%), and Other $316m (1.1%).
Why it matters: The group is heavily reliant on spirits — if spirits demand falls globally, there are few other categories to cushion the blow.
p.157 important conf 95%
US sales were $8,138m in 2025 out of $27,964m total (29.1%). Great Britain contributed $2,989m (10.7%), India $3,233m (11.6%), and Rest of World $13,604m (48.6%).
Why it matters: Nearly a third of all sales come from the US alone, making the group very exposed to any US-specific economic, regulatory or consumer trend changes.
p.157 important conf 95%
Europe sales were $8,037m in 2025 vs $8,024m in 2024 (up just $13m). However, operating profit before exceptional items fell from $1,379m to $1,302m, a drop of $77m or 5.6%.
Why it matters: Sales holding steady while profits drop suggests costs are rising faster than revenues in Europe, squeezing margins.
p.156 useful conf 93%
Latin America and Caribbean operating profit before exceptionals grew from $502m in 2024 to $528m in 2025, up $26m or 5.2%. Sales were $2,390m vs $2,432m in 2024 (down slightly).
Why it matters: This region is growing profits even as sales dip, meaning margins are improving — a positive sign in an otherwise challenging picture.
p.156 useful conf 93%
Africa operating profit before exceptionals rose from $131m in 2024 to $283m in 2025, more than doubling. Sales grew from $2,478m to $2,684m. Africa is 5% of group sales.
Why it matters: Africa is growing fast in profit terms, but from a small base — it is not yet large enough to offset declines elsewhere.
p.156 useful conf 93%
Reported operating profit dropped from $6,001m to $4,335m, a 27.8% fall; organic operating profit fell 0.7% with organic operating margin at 28.0% (down 68 basis points).
Why it matters: Even stripping out one-off costs, the profit the company makes from every pound of sales has shrunk, meaning less money is left over to pay dividends or invest in brands.
p.6, p.16, p.21 critical conf 95%
Basic EPS fell from 173.2 cents to 105.9 cents (a 38.8% drop); EPS before exceptional items fell 8.6% from 179.6 cents to 164.2 cents.
Why it matters: Shareholders are getting less profit for each share they own, and even removing one-off write-offs the underlying earnings are still falling year on year.
p.6, p.16, p.21 critical conf 95%
TSR was down 24% over the past 12 months (fiscal 24 also -24%), meaning investors lost money on their Diageo shares for a second consecutive year.
Why it matters: Two years of negative returns for shareholders raises questions about whether the current strategy is rebuilding confidence fast enough.
p.15, p.17 critical conf 93%
Organic net sales grew 1.7% in fiscal 25, made up of 0.9% volume growth and 0.8% price/mix improvement; reported net sales fell 0.1% to $20,245m (fiscal 24: $20,269m).
Why it matters: Growth is barely holding on — volume is rising but the company is finding it harder to charge more for its products, which squeezes how much money each bottle sold actually brings in.
p.6, p.16, p.21 important conf 95%
Free cash flow rose by $139m to $2,748m in fiscal 25 (fiscal 24: $2,609m), driven by better working capital management and lower stock movement.
Why it matters: The business is generating more real cash than last year, which means it can still pay dividends and reduce debt even while profits are under pressure.
p.6, p.15, p.17 important conf 95%
ROIC declined from 15.8% in fiscal 24 to 13.7% in fiscal 25, driven mainly by lower income from the Moët Hennessy joint venture and unfavourable currency moves.
Why it matters: The business is getting a smaller return on the money tied up in it, which makes it less attractive versus other investment options over time.
p.15, p.17 important conf 90%
Tequila organic net sales were up 18% in fiscal 25, with share gains in 94% of reported net sales in measured markets, led by Don Julio Reposado.
Why it matters: Tequila is the fastest-growing part of the business and shows the company can still win big in the right category, which helps offset weakness elsewhere.
p.4 important conf 88%
Johnnie Walker saw an organic net sales decline in fiscal 25, driven by the United States, Asia Pacific Travel Retail and Greater China; scotch is described as 'typically one of the most adversely impacted categories' in a consumer downturn.
Why it matters: Scotch is one of Diageo's biggest earners, so a sustained slide there could meaningfully drag on total group revenues if conditions do not improve.
p.4, p.7 important conf 85%
Price/mix contributed just 0.8 percentage points to organic net sales growth in fiscal 25, compared to a stronger contribution in prior years when premiumisation was more buoyant.
Why it matters: If consumers stop trading up to pricier bottles, Diageo loses one of its key levers for growing profit, and growth becomes harder to sustain.
p.6, p.16, p.21 important conf 88%
Under the Accelerate programme, Diageo now targets circa $625m in cost savings over three years, covering A&P efficiencies, overheads, supply chain and trade investment.
Why it matters: This is a new and larger savings target than before, showing management is responding to the profit squeeze by cutting costs rather than waiting for sales to recover.
p.5, p.6, p.9 important conf 90%
Diageo holds the number one position in international spirits by retail sales value and is 1.4x larger than its nearest international competitor (IWSR 2024).
Why it matters: Market leadership gives Diageo pricing power and shelf space that smaller rivals cannot match, which is a key reason to do business with them.
p.1, p.8 useful conf 92%
The total recommended dividend is 103.48 cents per share, unchanged from fiscal 24 (103.48 cents), keeping the full year payout flat.
Why it matters: Holding the dividend steady rather than cutting it signals the board still believes in the business long-term, but there is no growth in income for shareholders this year.
p.2, p.6 useful conf 97%
Super-premium, ultra-premium and luxury tiers combined represent 25% of fiscal 25 reported net sales; the premium tier is 37%, standard 30% and value 8%.
Why it matters: A quarter of sales coming from the highest-priced products shows Diageo's premiumisation strategy is still delivering, even if growth in that segment has slowed.
p.1 useful conf 85%
Net borrowings at 30 June 2025 were $21,854m, up from $21,017m a year earlier. The company targets a net debt to adjusted EBITDA ratio of 2.5-3.0x; actual ratio is 3.4x.
Why it matters: Debt is above the company's own comfort zone, meaning it has less room to absorb a shock or fund a big deal without cutting the dividend or selling assets.
p.34, p.192 important conf 92%
Operating profit was $4,335m and finance charges were $1,251m, giving interest cover of 3.5x.
Why it matters: For every £1 of interest owed, the company earns £3.50 from operations — that is enough buffer, but the margin has shrunk from prior years as profits fell.
p.33, p.148 important conf 95%
Borrowings due within one year total $2,928m at 30 June 2025, including $500m 5.200% bonds and $750m 1.375% bonds both due in 2025.
Why it matters: A large chunk of debt needs repaying or refinancing very soon; if credit markets tighten, this could get expensive.
p.192, p.193 important conf 95%
The final dividend for 2025 is 62.98 cents per share, the same as 2024. Total equity dividend paid in 2025 was $2,298m (2024: $2,242m).
Why it matters: Keeping the dividend flat while profits fell shows the board is protecting shareholder returns, but it also means debt stays higher for longer.
p.34 important conf 93%
No shares were purchased under a buyback programme in the year ended 30 June 2025. In 2024, $987m of shares were bought back and cancelled.
Why it matters: Stopping the buyback frees up cash to pay down debt, which makes sense given leverage is above target — a sensible move for creditors.
p.34, p.194 important conf 95%
Gross borrowings before leases and derivatives mature as follows: within 1yr $2,928m, 1-3yr $4,662m, 3-5yr $4,159m, beyond 5yr $11,999m.
Why it matters: Most debt is long-dated, so the company is not forced into a refinancing crunch in the near term — a reassuring sign for suppliers and creditors.
p.193 useful conf 95%
Total lease liabilities at 30 June 2025 were $653m ($112m current, $541m non-current), up from $604m in 2024.
Why it matters: Leases add a modest amount to total obligations; this is a normal level for a company of this size and is not a concern on its own.
p.191 useful conf 95%
Gross borrowings at 30 June 2025: USD $11,395m, Euro $6,164m, Sterling $4,408m, Canadian dollar $1,049m, other currencies $1,038m.
Why it matters: Borrowing in multiple currencies helps match income to debt, but it also means exchange rate swings can change the reported debt level.
p.193 useful conf 90%
Free cash flow in 2025 was $2,748m (2024: $2,609m). Net debt still rose by $837m to $21,854m after dividends and other payments.
Why it matters: The business generates strong cash, which gives it the means to service and gradually reduce its debt over time.
p.34 useful conf 90%
The report does not disclose any covenant breach, waiver request, or credit rating change in the year ended 30 June 2025.
Why it matters: No covenant problems means lenders have not demanded early repayment — the company remains in good standing with its banks and bondholders.
p.192 useful conf 80%
In 2025 the group issued $2,452m of euro-denominated bonds and $1,491m of dollar-denominated bonds, while repaying $2,416m of existing bonds.
Why it matters: The company can still tap bond markets at scale, which means it is not struggling to roll over its debt.
p.193 useful conf 93%
Specialist deep panels · Structured price capture
Below the prose findings, each agent publishes a structured numeric metrics block. Segmental revenue, named KPIs with YoY %, and capital-structure metrics — direct from the source filings.
Segmental analysis
Top-segment revenue concentration: 30.9% · Segment totals reconcile to the group P&L
Strategic KPIs
Capital structure
Management questions · Open inquiry
Generated by the AI from the disclosure gaps it detected. Hover or tap each card to surface the underlying evidence that triggered the question.
Verification gaps
High-trust analysis names its own blind spots. These are metrics the AI looked for and couldn't find — anything material to the summary needs management or independent verification.
All findings are drawn from agent outputs with high confidence scores (0.85–0.97); no agents reported missing data, though the Johnnie Walker organic sales decline lacks a precise numeric value, limiting exact quantification of scotch category drag.
08 · Documents
Filing pattern + upcoming windows
Due at Companies House by 31 December 2026 for the period ending 30 June 2026.
Annual confirmation due by 14 July 2026 (made up to 30 June 2026).
Final chapter — What we found
Strong filing
The brands are world-class; the balance sheet is under more pressure than it has been in years — FY2026 earnings will show whether this is a one-year dip or the start of a harder reset.
FY2025 accounts
The five plain-English briefing questions are on Origin — read the story first, then return here for the TrustScore scorecard.
Signal Radar
Decisive findings
The hard-hit facts that drove the score. Full breakdown — chapters, between-the-lines, all specialist findings — sits on AI Insights.
Group operating profit before exceptional items was $5,704m in 2025. After exceptional charges of $1,369m, reported operating profit was $4,335m. In 2024, the exceptional credit was $56m, giving reported operating profit of $6,001m.
Why it matters: A large chunk of profit disappeared due to one-off charges in 2025 — investors need to understand whether these are truly one-off or a sign of deeper problems, especially given impairments of intangible assets and associates totalling $796m.
p.156, p.157
North America operating profit before exceptionals was $3,053m out of total group $5,704m in 2025, representing 53.5% of the group total. In 2024 it was $3,236m out of $5,945m (54.4%).
Why it matters: More than half of group profits come from one region, so any downturn in North America — such as from trade policy changes or consumer shifts — could hit the whole group hard.
p.156
Reported operating profit dropped from $6,001m to $4,335m, a 27.8% fall; organic operating profit fell 0.7% with organic operating margin at 28.0% (down 68 basis points).
Why it matters: Even stripping out one-off costs, the profit the company makes from every pound of sales has shrunk, meaning less money is left over to pay dividends or invest in brands.
p.6, p.16, p.21
10 · Verification
This report reads the full filing package — digital iXBRL where available, the filed PDF (including notes), and the Companies House register — not a single uploaded document.
Figures are as filed by the company — Companies House does not verify the accuracy of information filed. Verif-AI checks internal consistency and flags anomalies, but cannot confirm the underlying figures are correct.
Reconciliation
Every balance-sheet and profit & loss line traced to where we read it in the filing. iXBRL — read straight from the company's audited machine-readable tags, so it ties exactly. PDF — read from the filed accounts document, with the supporting note cited so you can check it. Flagged — our consistency check marked it for a closer look.
33 read from audited iXBRL tags · 0 from the filed PDF.
What we read
Who we cross-checked
Screening status
Screened 1 name (registered company + officers/PSCs) against live lists: FCDO Consolidated UK Sanctions List — 57503 entries, refreshed 04 July 2026 · OFAC SDN (US Treasury) + akaName aliases + relationship graph — 39437 entries, refreshed 04 July 2026 · EU Consolidated Financial Sanctions — 29880 entries, refreshed 04 July 2026 · UK Parliament — current Members of Commons & Lords — 1441 entries, refreshed 04 July 2026.
Steps we ran
Pipeline — what ran on this report
Limits and caveats
No PSCs are recorded against this entity — typical for listed PLCs (widely held by institutional investors) and for dormant / micro-entity filings.