Diageo announced on Wednesday the immediate departure of its CEO Debra Crew, after just two years in charge of the group. CFO Nik Jhangiani will take over on an interim basis as the global spirits giant attempts to turn around its performance and reduce its debt.
Diageo shares rose about 3% following the announcement, one of the best performers on the FTSE 100 index in London, with the news revealed earlier in the day by the Financial Times.
The group, which owns Johnnie Walker and Guinness, said Crew's departure was "mutually agreed" but did not provide any more details. Diageo is nevertheless maintaining its financial forecasts for FY 2025 and 2026.
The company is engaged in a major turnaround plan, announced last May, which includes $500m in cost savings and significant asset disposals by 2028.
Debra Crew took the helm at Diageo in June 2023, following the death of former CEO Ivan Menezes. Formerly the group's chief operating officer, she was one of the few women to head a FTSE 100 company.
Under her leadership, Diageo's share price fell by around 44%. "Debra has had two difficult years at the helm of Diageo. Let's hope that new leadership will help revitalize the company," commented Fred Mahon, fund manager at Church House, a shareholder in the group.
Despite this stockmarket decline, Diageo remains one of the strongest players in the European wine and spirits sector, which is experiencing a slowdown after the surge in home consumption during the pandemic.
Nik Jhangiani joined the group last September as CFO, at a time when Diageo was facing declining sales and weakened investor confidence. The group could also be impacted by new customs barriers in the US.
