Diageo’s new interim CEO, Nik Jhangiani, impresses investors with his communication skills. Debra Crew steps down after two years, facing a 44% share drop. Jhangiani may become permanent CEO, but challenges include reducing debt and boosting growth amid market uncertainties and competition from alternatives like cannabis drinks.

Crew’s tenure saw some positives, but a profit warning in November 2023 damaged investor confidence. Jhangiani, a familiar face from Coca-Cola, is now leading Diageo’s turnaround by focusing on cost-cutting and debt reduction. The new CEO must present a convincing growth plan to stakeholders.

Diageo’s debt has doubled since 2017, with leverage exceeding the target range at 3.1 times operating profit. Share buybacks contributed to this, with $13 billion spent during industry booms. The company now faces challenges in selling assets in a tough market, exacerbating financial issues caused by poor capital allocation decisions.

Read more at Yahoo Finance: Analysis-Diageo’s new CEO needs actions, not just words