Diageo forecasts flat annual sales growth, raises cost-savings target
The maker of Johnnie Walker whisky and Smirnoff vodka is looking for a new chief and finance head to turn around its financial and share performance, and guide it through a plan announced in May to cut $500 million in costs and make substantial asset sales by 2028.
"Macroeconomic uncertainty and the resulting pressure on consumers continues to weigh on the spirits sector," Diageo said in its first set of results under interim CEO Nik Jhangiani.
Diageo said it expects organic sales to fall slightly in the first half of 2026, with growth more weighted towards the second half.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 minutes ago
- Yahoo
Menzies and Beever and Struthers to merge
UK's business advisory and accountancy firms Menzies Beever and Struthers have announced their merger, resulting in a new national accountancy firm. The newly created firm will have a total fee income of £110m ($146m) and a workforce of more than 1,000 professionals. This merger combines two independent firms with significant histories in their markets; Menzies is based in London, while Beever and Struthers operates from Manchester. Beever and Struthers executive partner Caroline Monk said: 'In a market where consolidation is often driven by private equity, this merger stands apart. 'It is rooted in shared independence, cultural alignment, and a mutual commitment to delivering lasting value and service excellence.' The merger expands the geographical footprint of the new firm, which will now have offices in London, Manchester, Birmingham, Cardiff, and various locations in the South East, thereby increasing its regional presence. Menzies expects this merger to enhance its capabilities as a full-service firm, and will incorporate Beever and Struthers' expertise in the not-for-profit, education, and social housing sectors. Established in 1912, Menzies provides a wide range of accountancy and advisory services. These include audit, tax, accounts advisory, financial planning, and transaction support. The firm serves a varied client base, from emerging businesses, to large corporations and high-net-worth individuals. Beever and Struthers specialises in audit, assurance, and strategic advisory services, focusing on housing providers, public sector organisations, educational institutions, and social enterprises across the UK. Menzies managing partner Simon Massey said: 'The merger with Beever and Struthers is a defining moment for Menzies. Their reputation in the not-for-profit, education, and social housing sectors is unmatched. 'This merger enables us to scale with purpose, deepen our sector specialisms, and continue investing in our people, clients, and future growth. Together, we're building a truly national firm that stands out for quality, expertise, and trusted relationships.' "Menzies and Beever and Struthers to merge" was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
12 minutes ago
- Yahoo
Oil giant BP surprises with better than expected earnings
Oil giant BP, which recently pivoted away from green energy, posted Tuesday better-than-expected quarterly earnings and announced a fresh review of costs. The British group's return to profit in the second quarter contrasted with weaker results from energy rivals, as lower exceptional charges offset falling oil prices. Profit after tax came in at $1.63 billion in the April-June period, compared with a net loss of $129 million in the second quarter of 2024, BP said in an earnings statement. Stripping out exceptional items, underlying net profit was down nearly 15 percent. "This has been another strong quarter for BP operationally and strategically," chief executive Murray Auchincloss said in the earnings statement. BP on Monday said it made its biggest oil and gas discovery in 25 years off the coast of Brazil. In February, BP launched a major pivot back to its more profitable oil and gas business, shelving its once industry-leading targets on reducing carbon emissions and slashing clean energy investment. However, energy prices have come under pressure in recent months on concerns that US President Donald Trump's tariffs will hurt economic growth, while OPEC+ nations have produced more oil. BP managed to post a profit for the second quarter thanks to impairments which were lower than one year earlier, along with a revaluation of assets -- notably in relation to liquefied natural gas (LNG) -- and divestments. - Sector woes - By contrast, US rivals ExxonMobil and Chevron, along with French group TotalEnergies, posted heavy falls to their net profits in the second quarter. As did oil giant Saudi Aramco, which on Tuesday announced its 10th straight drop in quarterly profits as a slump in prices hit revenues. The average price for Brent North Sea crude, the international benchmark, stood at $67.9 per barrel in the second quarter, down from $85 one year earlier. British rival Shell still managed to post a slight increase to its profit after tax for the latest reporting period. As for BP, Auchincloss said the company was launching "a further cost review and, whilst we will not compromise on safety, we are doing this with a view to being best in class in our industry". Shares in BP gained 2.2 percent in London morning deals following its results and news of a fresh dividend and share buyback. "A slick turnaround plan pumped up BP's second-quarter results," noted Derren Nathan, head of equity research at Hargreaves Lansdown. "Despite lower oil and gas prices, it's managed to push underlying profits up by nearly $1 billion from the first quarter to $2.4 billion, well ahead of analyst forecasts." Nathan added that "shareholders will be glad to see this matched with financial discipline". BP already announced plans this year to cut cleaner energy investment by more than $5 billion annually and offload assets worth a total of $20 billion by 2027. It recently agreed to sell its onshore wind energy business in the United States, while Shell has also scaled back its climate objectives. BP last month named Albert Manifold as its new chairman, replacing Helge Lund, whose departure was announced amid the strategy reset. The group's net profit plunged 70 percent in its first quarter, hit by weaker oil prices. burs-bcp/ajb/lth
Yahoo
12 minutes ago
- Yahoo
Palantir shares jump as soaring AI demand powers forecast upgrade
(Reuters) -Palantir Technologies shares rose 5% before the bell on Tuesday, after strong demand for its AI-powered services across governments and commercial businesses prompted an increase in its annual revenue forecast. Investors have been betting big on the data analytics and defense software company's military-grade artificial intelligence tools and services, which have propelled its shares to more than double in value this year, making them the best performer on the S&P 500 index through last close. "Palantir's staggering growth is showing no signs of slowing... and (its) ability to grow at scale has been underestimated by a large cohort of the market," said Matt Britzman, senior equity analyst at Hargreaves Lansdown. The company raised its annual revenue forecast for the second time this year and above Wall Street estimates. Sales to the U.S. government jumped 53% to $426 million, representing more than 42% of the total second-quarter revenue of about $1 billion. Last week, the U.S. Army said it might spend up to $10 billion on Palantir's services over the next decade. The Denver, Colorado-based company, co-founded by Peter Thiel, expects expenses to rise significantly in the third quarter due to seasonal hiring amid rising competition among industry leading tech firms to poach top talent, as businesses rapidly look to adopt AI. The stock trades at over 200 times its 12-month forward earnings estimates, compared with AI giant Nvidia's 34.81 and S&P 500's 27.44. Jefferies analysts cautioned that there is a "disconnect between valuation and achievable growth". At least six brokerages raised their price targets on the stock after the results. Sign in to access your portfolio
