For the three months to 31 March 2026, net sales rose 2.3% on a reported basis to $4.5bn, “reflecting a positive hyperinflation adjustment, partially offset by the impact of disposals and limited impact from foreign exchange,” the company said.

North America continued to weigh heavily on performance with organic net sales down 9.4% in Q3 and US spirits down 15.4%.

Tequila saw double-digit decline in the US, driven by competitive pressure and category softness.

However, beer and RTDs were on the rise, with Diageo Beer Company USA delivering 9.1% growth, led by Smirnoff RTDs and Guinness.

Outside North America, performance was notably stronger as Europe delivered organic growth of 8.8%, led by double-digit gains for Guinness in Great Britain and Ireland, alongside solid scotch performance in markets including MENA and Türkiye. 

Latin America and the Caribbean saw organic growth of 16.2%, with growth across most key markets and benefit in the quarter from buy-in ahead of the FIFA World Cup and Easter timing. 

Scotch and RTDs were standout categories, with Smirnoff Ice performing particularly strongly, led by Brazil.

Africa also continued to deliver double-digit momentum, with organic sales up 17.1% and growth driven across beer, spirits and RTDs.

In contrast, Asia Pacific remained under pressure, with organic sales down 0.8%. China saw a double-digit decline in Chinese white spirits reflecting reduced consumption primarily due to market policy, impacting the region’s net sales.

Dave Lewis, chief executive officer, said: “We are pleased with the strong growth across Europe, LAC and Africa. North America remains our biggest challenge, where market conditions are soft and our offer needs to be more competitive. Actions are already underway to address this.

“Progress on the re-design of our new strategy and the shaping of a more competitive operating framework is well underway. While we are mindful of continued geopolitical uncertainty, including the impact of the ongoing conflict in the Middle East on energy, supply and distribution; we are reiterating our fiscal 26 guidance,” Lewis continued.

Fiscal 26 guidance remains unchanged from fiscal 26 H1 results.