Diageo pivots with $1B savings plan to reboot growth
Diageo unveiled a $1 billion, three-year savings plan to turn around a sluggish business, recognizing $1.2 billion in restructuring costs and promising a more agile, cost-efficient operation. For the year to June 30, organic net sales fell 2% to about $19.6 billion, while adjusted operating profit rose 2% to $5.7 billion due to savings (tariffs partly offset the gains). North America sales declined 8.4%, but World Cup-driven cocktails and Casamigos/other brands supported ready-to-drink growth, leading analysts to expect the plan to lift profits and support the stock lifted about 4%.
