(Reuters) -Diageo trimmed its fiscal 2026 sales and profit forecast on Thursday due to weakening demand in the United States and China, and did not announce a permanent CEO as some hoped, leaving lingering uncertainty over who will lead the world’s top spirits maker.
The maker of Johnnie Walker whisky and Smirnoff vodka is trying to cut costs and sell assets to help reduce its $22 billion debt as the sector contends with cooling post-pandemic demand, persistent weakness in key markets, tariff-related uncertainty, and shifting consumer drinking habits.
“We are not satisfied with our current performance and are focused on what we can manage and control,” interim CEO Nik Jhangiani said in a trading update, as the company reported flat organic sales growth in its first quarter.
Jhangiani had earlier said he expected a decision to be made on the permanent CEO by the end of October, following Debra Crew’s abrupt departure in July.
“We are well advanced in sharpening our strategy, and we are developing and already implementing clear plans to drive growth across the broader portfolio,” Jhangiani said on Thursday.
Diageo, which also owns brands including Guinness beer and Don Julio tequila, now expects its sales to be flat to slightly lower, and low- to mid-single-digit growth in operating profit for its fiscal 2026.
It had earlier forecast flat organic sales and mid-single digit operating profit growth.
(Reporting by Shashwat Awasthi in Bengaluru and Emma Rumney in London; Editing by Sherry Jacob-Phillips and Louise Heavens)
