Latest news with #NikJhangiani
News18
2 days ago
- Business
- News18
Who Is Indian-Origin Nik Jhangiani? Diageo's Interim CEO After Debra Crew's Exit
Last Updated: Debra Crew stepped down as Diageo CEO, with CFO Nik Jhangiani named interim CEO. Diageo announced on Thursday that Debra Crew has stepped down as Chief Executive Officer and as a Board Director with immediate effect, by mutual agreement. Until a permanent appointment is made, Nik Jhangiani, Chief Financial Officer, will assume the role of Chief Executive Officer on an interim basis. Meanwhile, The Board has begun a comprehensive formal search process, which will include consideration of internal and external candidates. Who Is Nik Jhangiani? The Indian-origin Nik Jhangiani is a veteran in global finance having a rich experience working with global companies spanning form beverages and telecom sectors. He was appointed CFO of Diageo plc, the world's largest spirits company known for brands like Johnnie Walker whisky and Guinness beer, in September 2024 Before Diageo, he served as Senior Vice President and CFO at Coca-Cola Europacific Partners for over eight years. His earlier stints include: He also served as Group CFO for Bharti Airtel between 2009-2012. Group CFO at Coca-Cola HBC (2000–2009) Multiple senior finance roles at Coca-Cola Enterprises and Coca-Cola European Partners As interim CEO, Jhangiani is tasked with steering Diageo through a challenging period marked by a 20% share price decline, cooling demand in key markets, and a $500 million cost-cutting initiative. Nik holds a degree in Economics and Accounting from Rutgers Business School (Class of 1988). His academic foundation, coupled with over 25 years of financial leadership, positions him as a capable interim leader during Diageo's transition phase. About Diageo Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits and beer categories. These brands include Johnnie Walker, Crown Royal, J&B and Buchanan's whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and is a global company, and our products are sold in nearly 180 countries around the world. The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
2 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
Yahoo
2 days ago
- Business
- Yahoo
Analysis-Diageo's new CEO needs actions, not just words
By Emma Rumney LONDON (Reuters) -Diageo's new interim CEO Nik Jhangiani has charmed investors with his cool confidence and clear communication, in contrast to his predecessor 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. Diageo announced Debra 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 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. 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 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. SALES CHALLENGES Crew did make some changes during her short tenure, including investing in Diageo's U.S. 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. DEBT INCREASE 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 $13 billion 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. 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
Reuters
2 days ago
- Business
- Reuters
Diageo's new CEO needs actions, not just words
LONDON, July 17 (Reuters) - Diageo's new interim CEO Nik Jhangiani has charmed investors with his cool confidence and clear communication, in contrast to his predecessor 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. Diageo announced Debra 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 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. 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 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 U.S. 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 $13 billion 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.
Yahoo
2 days ago
- Business
- Yahoo
Analysis-Diageo's new CEO needs actions, not just words
By Emma Rumney LONDON (Reuters) -Diageo's new interim CEO Nik Jhangiani has charmed investors with his cool confidence and clear communication, in contrast to his predecessor 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. Diageo announced Debra 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 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. 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 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. SALES CHALLENGES Crew did make some changes during her short tenure, including investing in Diageo's U.S. 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. DEBT INCREASE 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 $13 billion 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.
