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Some Diageo teams are cutting around 20% to 30% of their staff after new CEO Dave Lewis ordered deep reductions in overheads to revive performance at the world's top spirits maker, two sources familiar with the plans said.
SMIRNOFF ICE KEEPS AMERICA'S 250TH CELEBRATION GOING WITH HOT DOG-FUELED GUINNESS WORLD RECORDS⢠ATTEMPTS PR Newswire
/PRNewswire/ -- America's 250th celebration is not over yet, and Smirnoff Ice is keeping the party going in the most summer-ready way possible: with Red, White
Diageo PLC (LSE:DGE) faces growing pressure to reset investor expectations when it reports annual results next month, with Deutsche Bank arguing the drinks group needs a more realistic profit base before it can return to consistent growth. The bank maintained its 'buy' rating but cut its target price to 1,700p from 1,759p ahead of the company's results and strategy update on 6 August.
While Saturday's games will take place in the U.S., the excitement is mostly elsewhere, after the U.S. was knocked out of the tournament. Investors looking for a World Cup bump might be feeling similarly let down.
We expect management to reset margins for FY2027 while outlining a credible recovery path driven by improved execution, reinvestment and market share stabilization. Operational self-help provides downside protection. Rightsizing supply chain and procurement functions could generate savings exceeding $350m, broadly consistent with management's Accelerate program. Beyond the US, Diageo continues to benefit from resilient international operations, with additional upside from APAC as the baijiu market normalizes.
Beverages - Alcohol industry players face moderation trends and cost pressure, but premiumization, RTD cocktails and low/no-alcohol drinks offer growth paths.
New Diageo PLC (LSE:DGE) boss Dave Lewis' long-awaited strategy update next month is unlikely to remove investor concerns over its biggest market, with UBS arguing expectations for a recovery in US spirits remain too optimistic. In a preview ahead of the drinks group's capital markets day in August, the bank said investors were focused on whether management would reset profit and margin expectations for the 2027 financial year as it attempts to revive sales in North America.
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