From Yahoo Finance.: 2025-05-19 08:46:00

Diageo plans to make significant changes to its product portfolio, possibly through asset disposals, according to CFO Nik Jhangiani. The company has already sold off brands like Cacique, Pampero, and Safari Liqueur, as well as assets in Africa. This move comes after announcing a $500m cost-saving plan to invest in future growth.

The cost-saving plan aims to generate £3bn free cash flow annually by 2025/26. Diageo will focus on areas like trade investment, A&P spending, overheads, and supply chain to achieve savings. The company’s ‘Accelerate’ initiative will reshape its business model for better efficiency and effectiveness.

Diageo CEO Debra Crew stated ongoing programs like the supply chain agility initiative will be included in the new cost-saving plan. The company reported a 2.9% increase in net sales to £4.38bn in the third quarter, with organic sales up by 5.9%. In North America, spirits sales and depletions rose, while Europe saw a slight dip due to geopolitical conflicts impacting consumer behavior.

Despite strong performance from Guinness, Diageo’s European net sales dropped 1.3% with organic sales down 0.4%. The company faces uncertainty from geopolitical conflicts affecting consumer spending and downtrading on spirits. Shares in Diageo were down 0.93% at 2,132p at 12:45 BST. 1. The stock market experienced a sharp decline today, with the S&P 500 dropping 3%. This was attributed to concerns over inflation and rising interest rates, causing investors to sell off stocks.

2. A new study has found that the Pfizer-BioNTech COVID-19 vaccine is 91% effective in preventing symptomatic infections in adolescents aged 12 to 15. This is promising news as vaccine rollout efforts continue.

3. The United Nations has warned of a looming famine in Yemen, with millions of people at risk of starvation. The ongoing conflict in the region has exacerbated food insecurity, leaving many in desperate need of assistance.

4. The European Union has announced plans to introduce a digital COVID-19 certificate to facilitate travel within the bloc. The certificate will show proof of vaccination, a negative test result, or recovery from the virus, allowing for easier movement between member states.

Read more: Diageo eyeing “substantial” asset sales