Latest news with #Jhangiani
Irish Examiner
2 days ago
- Business
- Irish Examiner
New CEO's tough task after Crew carried the can for Diageo's woes
Guinness owner Diageo's new interim chief executive Nik Jhangiani has charmed investors with his cool confidence and clear communication, in contrast to his predecessor Debra Crew who struggled to win over the company's shareholders during her short term. But whoever takes on the full-time leadership of the world's top spirits maker will inherit challenges that will take more than words to address. While Guinness has been a star performer for the group, other brands have been facing major challenges. Diageo announced Ms Crew was stepping down with immediate effect on Wednesday after just two years leading the company - a period in which its shares fell 44% amid a sector-wide downturn. Four investors, including one top 20 shareholder, told Reuters that Mr Jhangiani, who joined Diageo as chief financial officer in September, would make a solid permanent CEO of the Johnnie Walker whisky and Don Julio tequila maker. Jhangiani is a graduate of Rutgers Business School, Newark, New Jersey, and is a certified public accountant in the state of New York. He began his career at Deloitte and went on to hold finance roles at Bristol Myers Squibb and Colgate-Palmolive, where he was the group financial director for Nigeria. In a career spanning more than 30 years, he has held senior finance leadership roles across the US, Europe, India and Africa and is credited with overseeing major capital markets activity, acquisitions and strategic transactions. Still, some of those shareholders cautioned, whoever takes the job permanently must cut Diageo's debt and revive growth at a time when consumers' wallets are stretched and the sector faces tariff hikes in the United States, its biggest market. At the same time, competition from alcohol alternatives like cannabis drinks is rising, some consumers are cutting back altogether and public health authorities are increasingly raising the alarm about alcohol's health risks. "We can't just hope for the best here," said Kai Lehmann, senior analyst at Flossbach von Storch, the top 20 shareholder, adding investors had criticised Crew for passivity and that belief in her plans to generate growth had waned. "The new CEO must immediately set about sharpening the portfolio and divesting categories and brands with no growth potential." Diageo's fortunes have turned dramatically since Ms Crew's appointment in June 2023 after the sudden death of predecessor Ivan Menezes. Menezes presided over a period of extraordinary growth for the industry as drinkers splurged on spirits after the COVID-19 pandemic, a trend that would later reverse amid high interest rates and inflation, sending industry sales spiralling. Decisions made during those high times, including to significantly increase Diageo's debt and set ambitious targets for future growth, complicated life for Crew and for the company. The new CEO inherits these challenges. Diageo declined to comment. Crew did make some changes during her short tenure, including investing in Diageo's US distribution, and despite the slide, the company's stock has performed relatively well versus peers. Not all investors were unhappy. But a November 2023 profit warning dented confidence in Crew from the outset, and it never fully recovered, Lehmann and five other investors said. Jhangiani, in contrast, joined in 2024 as a familiar and trusted figure thanks to his work at Coca-Cola bottlers. He quickly became the face of Diageo's turnaround, scrapping Menezes' ambitious sales targets and launching a plan to cut costs and sell assets to reduce the company's debt ratio. "They both said the right things," Chris Beckett, analyst at Diageo investor Quilter Cheviot said of Crew and Jhangiani. " was always at the back of the mind, who was really running the company?" Whoever takes over, Diageo must communicate a convincing plan for growth, Beckett, Lehmann and two other investors said. Diageo, at least, is a company "with a problem, not a crisis", said Steve Clayton, portfolio manager at Hargreaves Lansdown, adding that it remained financially strong. Leverage has, however, crept above Diageo's target range to stand at 3.1 times operating profit at the end of 2024. Diageo's debts have doubled since 2017, driven in large part by $13bn (€11.16bn) worth of share buybacks over the period, according to Fintan Ryan, analyst at Goodbody. That included extensive buybacks during the industry's boom in 2022 and in 2023, when shares were on average 40% more expensive than they are currently, Lehmann said. The strategy left Diageo looking to sell assets in a tough environment when it might get a worse price, said Michael Laskin, a senior fixed income analyst at Diageo shareholder Columbia Threadneedle. Laskin said Diageo failed to see the sharp drop in consumption coming and instead built up debts that now exacerbate its problems. These decisions were, in hindsight, a "lesson in poor capital allocation" that cost investors and makes the CEO's life harder today, Lehmann said. Reuters
Time of India
4 days ago
- Business
- Time of India
Leadership shake-up at Diageo: Who is Nik Jhangiani? Indian-origin executive steps in as interim CEO; $500m cost-cut plan on track
Diageo, the maker of Johnnie Walker whisky and Guinness beer, announced on Wednesday that chief executive officer Debra Crew has stepped down with immediate effect. The company said the decision was made 'by mutual agreement' but did not specify reasons for her departure, as reported by AFP. Crew, Diageo's first female CEO, had taken over two years ago after the death of her predecessor Ivan Menezes. Chief financial officer Nik Jhangiani has now taken over as interim CEO while the board begins a formal search for a permanent replacement. Diageo's Chair John Manzoni thanked Crew for 'steering the company through the challenging aftermath of the global pandemic and the ensuing geopolitical and macroeconomic volatility.' Jhangiani takes over amid business challenges As reported by Reuters, Diageo is in the midst of a turnaround strategy targeting $500 million in cost savings after a tough year that saw its share price drop more than 20%. The company is also managing pressures from US tariffs, which are expected to cost around $150 million. Despite these challenges, Diageo said its financial guidance for the 2025-26 year remains unchanged. Who is Nik Jhangiani? Nik Jhangiani is a seasoned finance leader with over 30 years of experience across the US, Europe, India, and Africa. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo A graduate of Rutgers Business School and a certified public accountant in New York, Jhangiani began his career at Deloitte before holding finance roles at Bristol Myers Squibb and Colgate-Palmolive. Jhangiani's career highlights include: Coca-Cola HBC (2004-2009): Group CFO Bharti Enterprises (2009-2012): Group CFO Coca-Cola European Partners and Enterprises (2012-2016): CFO roles Coca-Cola Europacific Partners (2016-2024): SVP and CFO Diageo (2024-present): CFO, now interim CEO As per Reuters, Jhangiani is credited with overseeing key acquisitions, capital market activities, and strategic deals during his career. As interim CEO, Jhangiani is expected to lead Diageo through its current restructuring phase and maintain focus on cutting debt and boosting performance. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
4 days ago
- Business
- Time of India
Who is Nik Jhangiani, the new interim CEO of Diageo? All you need to know about the Indian-origin industry veteran
Indian-origin Nik Jhangiani , a seasoned finance executive with over three decades of global experience in the consumer and beverage industries, has stepped in as interim CEO of Diageo following the unexpected departure of Debra Crew. Known for his deep expertise in financial leadership and operational strategy , Jhangiani is widely viewed as a steady and capable hand to guide the world's largest spirits maker through its ongoing turnaround efforts. Explore courses from Top Institutes in Select a Course Category Artificial Intelligence Healthcare Data Analytics CXO Finance Data Science PGDM Product Management MBA Design Thinking Operations Management Management Leadership Data Science Cybersecurity Digital Marketing healthcare Others Project Management Public Policy Technology others Degree MCA Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details He joined the popular alcohol maker as Chief Financial Officer and took up a position in company's Board and Executive Committee in Autumn 2024. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Specialist Down Jackets for Ultralight Adventures Trek Kit India Learn More Undo "CFO and Interim CEO Nik Jhangiani has to be a candidate for the permanent role, but whoever gets it, we don't think Diageo's problems will be easily resolved," RBC Capital Markets analyst James Edward Jones told Reuters. A proven leader in the beverage industry Jhangiani's career spans multiple continents and industries, with a special focus on beverage giants. Live Events Prior to joining Diageo, he served as Chief Financial Officer at Coca-Cola Europacific Partners (CCEP), the largest Coca-Cola bottler globally, where he managed finances for a company generating over €18 billion in revenue. His tenure at CCEP, from 2016 until his move to Diageo, was marked by navigating complex markets and driving growth. Before CCEP, Jhangiani was CFO and Senior Vice President at Coca-Cola Enterprises (CCE), and earlier, Group CFO at Bharti Enterprises, one of India's leading conglomerates with diverse operations across 21 countries. Having spent more than 20 years within the Coca-Cola ecosystem, he brings a unique blend of financial acumen and industry-specific insight that few in the sector possess. Leading Diageo through change Diageo, the British multinational behind iconic brands such as Johnnie Walker and Guinness, announced Jhangiani's interim appointment after Debra Crew stepped down after two years as CEO. The company is in the midst of a major cost-cutting and restructuring plan aimed at reducing debt and improving performance. Jhangiani's financial discipline and global perspective position him well to lead Diageo as it pursues a $500 million cost reduction plan and asset sales by 2028. Though no permanent CEO has been named yet, Jhangiani's appointment underscores Diageo's focus on steady leadership during a pivotal time when several prominent brands are looking shuffle leaders in desperate attempts to rescue plummetting performances across the FMCG sector.
Business Times
5 days ago
- Business
- Business Times
Guinness-owner Diageo CEO step downs after tough two years, finance chief to lead in interim
[LONDON] Diageo CEO Debra Crew has stepped down after just two years in the job, the world's biggest spirits maker said on Wednesday (Jul 16), with finance chief Nik Jhangiani taking over in the interim as the company strives to boost its performance and cut debt. Shares in the maker of Johnnie Walker whisky and Guinness beer rose about 3 per cent after the Financial Times first reported the news. They were among the top percentage gainers on Britain's blue-chip FTSE 100 index. Diageo said Crew was leaving immediately by mutual agreement. It did not give further details but said it was maintaining its forecasts for fiscal 2025 and 2026. The company is in the midst of a turnaround drive and in May unveiled a plan to cut US$500 million in costs and make substantial asset sales by 2028. Crew had been in the top role for just about two years after long-time boss Ivan Menezes' death in June 2023 following a brief illness. She was one of only a handful of women to lead a blue-chip UK company. Crew was previously Diageo's chief operating officer. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The company's shares lost about 44 per cent of their value during her tenure. 'Debra has had a tough couple of years at the helm of Diageo and hopefully some new leadership will help to reinvigorate the company,' said Fred Mahon, fund manager at Diageo investor Church House. Still, Diageo's shares have been among the better performers in the European wine and spirits sector, which has struggled after a boom during the pandemic when people drank more at home. Under Crew, Jhangiani joined Diageo as chief financial officer in September last year as the company struggled with falling sales and wavering investor confidence. It is also facing a possible hit from US tariffs. Crew and Jhangiani did not immediately respond to requests for comment on LinkedIn. REUTERS
Yahoo
5 days ago
- Business
- Yahoo
Diageo CEO step downs after tough two years, finance chief to lead in interim
(Reuters) -Diageo CEO Debra Crew has stepped down after just two years in the job, the world's biggest spirits maker said on Wednesday, with finance chief Nik Jhangiani taking over in the interim as the company strives to boost its performance and cut debt. Shares in the maker of Johnnie Walker whisky and Guinness beer rose about 3% after the Financial Times first reported the news. They were among the top percentage gainers on Britain's blue-chip FTSE 100 index. Diageo said Crew was leaving immediately by mutual agreement. It did not give further details but said it was maintaining its forecasts for fiscal 2025 and 2026. The company is in the midst of a turnaround drive and in May unveiled a plan to cut $500 million in costs and make substantial asset sales by 2028. Crew had been in the top role for just about two years after long-time boss Ivan Menezes' death in June 2023 following a brief illness. She was one of only a handful of women to lead a blue-chip UK company. Crew was previously Diageo's chief operating officer. The company's shares lost about 44% of their value during her tenure. "Debra has had a tough couple of years at the helm of Diageo and hopefully some new leadership will help to reinvigorate the company," said Fred Mahon, fund manager at Diageo investor Church House. Still, Diageo's shares have been among the better performers in the European wine and spirits sector, which has struggled after a boom during the pandemic when people drank more at home. Under Crew, Jhangiani joined Diageo as chief financial officer in September last year as the company struggled with falling sales and wavering investor confidence. It is also facing a possible hit from U.S. tariffs. Crew and Jhangiani did not immediately respond to requests for comment on LinkedIn. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
