Diageo's new boss signals deep reset with dividend and forecast cuts - Reuters

<a href="https://news.google.com/rss/articles/CBMirAFBVV95cUxQVUxGSmpBNWZtWkRHR2MwbGEzakNiRHJTWDJzVFh6RzF3SVNlQi1nbWhDUm51bUNweVJyMEZsNHI3NGw1bVBsak8waTRqclJfRzBwNVd6NURScjdxRkwtR1dkaUVUT3M4cmlIdTU1cmZ3NG5rUGpVajc3VV9TakJFLVF2R2IxclhFVTJmQ0VtU3VGaFd6YVhuYU4zMXl1eFJJSVdQamcwRzViOF93?oc=5" target="_blank">Diageo's new boss signals deep reset with dividend and forecast cuts</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

Diageo has reduced its annual sales and profit forecast for the second time in four months and halved its dividend, citing weak demand in the U.S. and China.

Diageo has halved its dividend and cut its annual sales and profit forecast for the second time in four months, citing weak demand in the U.S. and China.

Diageo shares fell after the Guinness maker cut its guidance for the year on weakness in the U.S. and slashed its dividend to help fund the turnaround plan of CEO Dave Lewis.

Diageo reported mixed interim results for the six months ended 31 December 2025, including a lowered outlook for fiscal year 2026 and a significant cut to its interim dividend.

Diageo, the world's biggest spirit maker, cut its annual sales and profit forecast for the second time in four months, citing weak U.S. and Chinese demand.

Diageo announced a significant reduction in its interim dividend to 20 cents per share, down from 40.5 cents a year earlier, as part of a strategic shift to strengthen its balance sheet and address declining sales performance.

Diageo shares tumbled as much as 6.5% on Wednesday after new chief executive Sir Dave Lewis, nicknamed ‘Drastic Dave’ for his history of aggressive cost-cutting, slashed the interim dividend to 20 cents.

New Diageo boss ‘Drastic Dave’ Lewis has made the “difficult decision” to cut the company’s dividend to shareholders, as it wrestles with falling sales and a $22bn debt pile.

Diageo, one of the world’s largest spirits makers and owner of brands like Guinness and Smirnoff, has cut its interim dividend by 50%. This decision follows weaker sales in key markets such as the United States and China.