Key facts
- Diageo shares rose as much as 10%.
- New CEO Dave Lewis announced a savings plan.
- The plan aims to deliver up to $850 million in cost savings.
- Diageo reported a 3% dip in sales for the year ending June.
- Diageo reported a more than 20% drop in profit for the year ending June.
Diageo's share price experienced a notable increase, rising as much as 8% in early trading after new CEO Dave Lewis unveiled a comprehensive plan targeting substantial cost savings. The company aims to deliver up to $850 million in savings through this initiative. This strategic announcement follows a challenging fiscal year for Diageo, which concluded in June. During this period, the company reported a 3% dip in overall sales. Furthermore, its profits saw a more than 20% decline compared to the previous year. The market's positive reaction suggests investor confidence in Lewis's ability to steer the company towards greater efficiency and profitability.