{"id":102905,"date":"2026-08-13T16:50:35","date_gmt":"2026-08-13T16:50:35","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/102905\/"},"modified":"2026-08-13T16:50:35","modified_gmt":"2026-08-13T16:50:35","slug":"diageo-boss-lewis-must-convince-sceptics-as-he-unveils-big-reset-on-thursday","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/102905\/","title":{"rendered":"Diageo boss Lewis must convince sceptics as he unveils big reset on Thursday"},"content":{"rendered":"

\"Diageo<\/a> Diageo boss Lewis must convince sceptics as he unveils big reset on Thursday Proactive uses images sourced from Shutterstock <\/p>\n

Diageo PLC (LSE:DGE)<\/a>\u00a0faces a difficult task convincing investors that its turnaround can revive sales without sacrificing profitability when it reports annual results and presents its new strategy on Thursday,\u00a0according to JPMorgan. <\/p>\n

Eight months after taking charge, chief executive Dave Lewis is expected to outline a reset aimed at making the Johnnie Walker and Smirnoff maker more competitive as it enters the 2027 financial year. <\/p>\n

JPMorgan analyst Celine Pannuti said the capital markets day would be “a test of Diageo’s fighting spirit” amid scepticism over the pace of recovery. <\/p>\n

Investors will be looking for detail on price reductions designed to restore volume growth, the length of the US turnaround and plans to expand beer and ready-to-drink products. <\/p>\n

Pannuti\u00a0is less worried than the market about deep, broad-based price cuts but sees persistent volume weakness as the bigger concern. <\/p>\n

She estimates Diageo could identify $1 billion of gross cost savings to fund investment without requiring a major reset to margins. <\/p>\n

For the 2027 financial year, the JPMorgan analyst expects Lewis to give cautious guidance on revenue returning to growth, against consensus forecasts of a 1.6% increase. <\/p>\n

Guidance for flat organic operating profit would probably be welcomed, she said. <\/p>\n

Other banks have been more downbeat in recent weeks, with\u00a0Deutsche Bank expecting a “substantial reset” to profitability<\/a> targets, forecasting a 0.3% revenue decline and a 9.3% drop in operating profit next year. <\/p>\n

UBS believes US spirits sales could fall 7%<\/a>, compared with the market’s forecast of a 3% decline, as price reductions spread beyond Casamigos to brands including Smirnoff and Captain Morgan. <\/p>\n

JPMorgan’s Pannuti believes cost savings should support earnings, but warned that a “lack of excitement” around the top-line recovery “should limit opportunities for a rerating” of Diageo shares. <\/p>\n","protected":false},"excerpt":{"rendered":"Diageo boss Lewis must convince sceptics as he unveils big reset on Thursday Proactive uses images sourced from…\n","protected":false},"author":2,"featured_media":102906,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[21250],"tags":[43171,21511,4110,21283,3988],"class_list":["post-102905","post","type-post","status-publish","format-standard","has-post-thumbnail","category-diageo","tag-celine-pannuti","tag-dave-lewis","tag-diageo","tag-johnnie-walker","tag-jpmorgan"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117089234047450894","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/102905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=102905"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/102905\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/102906"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=102905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=102905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=102905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}