Shares in Diageo, the UK-based drinks company, increased by 10% in trading today after Chief Executive Dave Lewis outlined his plan to revive the company's performance. Lewis, known for his cost-cutting at Tesco, has pledged to achieve $1bn in savings over two years through a "significant" restructuring.
The company reported that net sales fell by 2% to $19.6bn (£14.6bn) in the year ending June 2026. Operating profit also saw a 27% decline, reaching $3.16bn, which included one-off charges related to the restructuring and write-downs of certain brands.
Lewis indicated that the savings could be achieved without eroding profits, but acknowledged a "very significant impact" on Diageo colleagues, suggesting potential job losses from the worldwide restructuring. The two-year programme is already underway and is expected to cost $1.2bn.