Reported net sales declined by 2.2% in the first quarter of fiscal 26, with reported growth in Europe, and the Latin America and Caribbean regions unable to fully offset year-on-year declines in Africa, North America and Asia Pacific.

The negative performance in Africa, however, was attributed to portfolio disposals, as reflected in the region’s organic growth of 8.9%.

“Net sales were flat organically in Q1, with growth in Europe, LAC and Africa offset by weakness in Chinese white spirits and a softer US consumer environment than planned for,” said Jhangiani.

“We are not satisfied with our current performance and are focused on what we can manage and control, acting with speed to drive efficiencies, prioritising investment and adapting more quickly to an evolving consumer environment.

“We are well advanced in sharpening our strategy, and we are developing and already implementing clear plans to drive growth across the broader portfolio, ensuring that we meet relevant consumer occasions of the future. Early results from our initiatives to strengthen our commercial execution capabilities, notably in Europe, are encouraging, and we are embedding a more rigorous performance-driven culture across the business.

“For fiscal 26 we have updated our guidance and remain committed to delivering c.$3 billion free cash flow in fiscal 26, growing this in future years. Our confidence in delivery of this cash guidance is underpinned by increased rigour and agility to manage maturing stock, A&P spend, capex, and cost discipline.”

China and the US, the world’s two largest spirits markets, both continue their negative consumption trends.

In the US, organic net sales were down by more than 4%, impacted by “lapping tough comparatives in tequila last year in Don Julio given restocking and additional size extensions”.

In Greater China, there were strong double-digit declines in both volume and net sales with reduced consumption across the baijiu category primarily as a result of market policy.

However, the declines in China were partially offset by double-digit growth in India.