Diageo has refused to be drawn on a report the company’s board is lining up a new chief executive.
The Financial Times reported today (16 July) the spirits giant’s board is planning to replace Debra Crew.
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Citing unnamed sources, the FT said Diageo’s directors are looking for a new CEO, with one source telling the publication a possible candidate is recently installed CFO Nik Jhangiani.
Approached by Just Drinks, a Diageo spokesperson declined to comment.
Crew took the helm at the UK-listed group in June 2023, moving up from the position of COO. In November that year, Diageo issued a profit warning amid pressure on its business in Latin America.
In the 12 months to the end of June, the Guinness owner saw its net sales fall 1.4% and dip 0.6% organically. Reported operating profit grew 8.2%, although the problems in Latin America meant organic operating profit declined.
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By GlobalDataIn February, Diageo, in a move similar to other major distillers, pulled its medium-term guidance, citing “macroeconomic and geopolitical uncertainty”. The change came alongside a set of half-year numbers that included a 0.6% decrease in net sales, although they inched up 1% organically. Operating profit declined, however.
May saw the Johnnie Walker maker announce it was looking to save around $500m in costs over the next three years as part of efforts to become more “agile” and “resilient”.
Diageo said the move would help the company invest in “future growth” and improve its “operating leverage”.
Jhangiani, who joined the company from Coca-Cola Europacific Partners in September, said at the time the group could make “substantial changes” to its product portfolio in the form of asset disposals.
During Crew’s tenure, Diageo has offloaded assets including rum brands Cacique and Pampero and Safari liqueur. The group has also sold assets in Africa, although last October it reportedly called off the sale of its Pimm’s gin-based liqueur after failing to secure an agreement with potential buyers.
The business said the cuts were part of a broader initiative – dubbed ‘Accelerate’ – that will see “a shift in how we do business”, including developing a “more agile global operating model”.
Diageo’s share price, which has fallen by more than 40% since Crew became CEO, was up 2.4% on the day at 1,933.32p at 12:20 BST.
