Diageo’s board has announced that it is evaluating external candidates for the chief executive position, with former GSK CEO Emma Walmsley among those being considered. The search follows the July 16, 2025 departure of Debra Crew and the appointment of Nik Jhangiani as interim CEO. Sources close to GSK have confirmed that Walmsley has expressed no interest in the role, adding a layer of uncertainty to the search.
Diageo reported flat organic net sales of $4.90 billion for the first quarter of fiscal 2026, a 2.2 % decline from $4.97 billion in the same quarter of fiscal 2025. The flat result was driven by a 2.9 % increase in organic volume that was fully offset by a 2.8 % negative price‑mix effect, largely stemming from weaker Chinese white‑spirits sales and a softer U.S. consumer environment.
Interim CEO Nik Jhangiani said the company’s net sales were flat, noting that growth in Europe, Latin America, and Africa was offset by weakness in China and the United States. He emphasized that the Accelerate program—aimed at delivering $625 million in cost savings over three years—remains a priority, and that the company is focusing on speed, investment, and adaptability to changing consumer dynamics.
Management has revised its full‑year guidance, now projecting organic net sales to be flat to slightly down for fiscal 2026 and operating‑profit growth to be in the low to mid‑single‑digit range. The downgrade from the previous “similar to fiscal 2025” outlook signals heightened concern about ongoing headwinds in key markets.
Headwinds include weaker Chinese white‑spirits demand, a softer U.S. consumer environment, and increased competition in the U.S. tequila segment. Tailwinds are seen in Europe, Latin America, and Africa, where growth remains solid, and in Guinness, which continues to perform well. The Accelerate program’s progress is viewed as a positive factor that could help mitigate margin pressure.
Investors reacted negatively to the downgraded outlook, reflecting concerns about the company’s near‑term growth prospects. The announcement of the CEO search, coupled with Walmsley's lack of interest, adds further complexity to the leadership transition.
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