Diageo, the world's largest spirits company, saw its shares rise by 5.6% following the introduction of a three-year savings plan aimed at revitalizing its business. The plan, which includes restructuring costs of $1.2 billion, is part of a new strategy designed to create a more agile and cost-effective operating model.
CEO Dave Lewis, who recently took over from Debra Crew, emphasized the challenges ahead, particularly in North America where organic sales fell by 8.4% in the year ending June 30.
Diageo's stock has faced significant declines, dropping nearly 13% over the past year and more than halving since reaching an all-time high in January 2022, when its market value was close to £90 billion (approximately $121 billion). The company's efforts to restore shareholder value will be closely watched as it navigates these challenges