Watch Now
Diageo plans cost cuts, asset sales to reduce debt
Diageo unveiled a plan on Monday to cut $500 million in costs and make substantial asset disposals by 2028, as the maker of Johnnie Walker whisky and Guinness beer looks to turn around its performance and reduce its debts.
Cost cuts would come from changes to Diageo’s trade investment and advertising spend, overheads and supply chain, finance chief Nik Jhangiani told investors.
The world’s largest spirits maker is also expected to dispose of some significant assets, but hold on to its Guinness brand, to help reduce its leverage ratio from 3.1 times net debt to operating profit at end-2024 to between 2.5 and 3 times.
“We see… some opportunities for what I would call substantial changes versus portfolio trimming,” Jhangiani said. “It’s clearly going to be above and beyond the usual smaller brand disposals you’ve seen over the last three years.”
CEO Debra Crew later told reporters that “nothing has changed” with regards to well-performing beer label Guinness, which Diageo ruled out selling earlier this year.
The cost cuts will help Diageo deliver about $3 billion free cash flow per annum from fiscal 2026, the company said. It also revised down its expected hit from U.S. tariffs as the threat of levies on Mexico and Canada receded.
The plan did not include large-scale redundancies, though some changes to headcount through approaches such as slower hiring may be included, Crew said.
Jhangiani joined in September as the company struggled with falling sales and wavering investor confidence.
Investors welcomed his plans, though its stock gave up earlier gains to trade 0.7% down by 1111 GMT.
“You can see that (Diageo) is gradually getting its act together again,” said Richard Scrope, manager of the VT Tyndall Global Select fund that holds Diageo stock.
TARIFF HIT REDUCED
Turning around a “supertanker” like Diageo however, takes time, said Rob Burgeman, investment manager at another Diageo investor RBC Brewin Dolphin.
The company still faces difficult trading conditions in key markets like the United States and Europe.
U.S. President Donald Trump’s 10% tariff on imports from places like Britain and the European Union will also deal a $150 million hit to Diageo’s operating profit per annum, the company estimated.
That is lower than the roughly $200 million it had previously estimated for the second half alone. Since its previous estimate in February, threats of a 25% levy affecting Mexican tequila and Canadian whisky have not materialised.
The company reported a 5.9% rise in third-quarter organic sales, largely thanks to an acceleration in shipments to North America ahead of the imposition of tariffs.
Shows
See AllAM Live
AM Live is NTV's morning current affairs show that sets the agenda for the day with insightful panels every weekday.
Business Redefined
Business Redefined is Kenya’s premier thought leadership platform for unpacking matters regarding economic and finance policy as well demystifying complex developments in the region’s capital markets.
Comedies
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Creatives & Coins Podcast
A podcast that dives deep into the vibrant and rapidly evolving digital creative economy in Kenya. This show explores the lives, challenges, and triumphs of individuals who are successfully navigating the gig and creative economies. From digital artists and content creators to freelance writers and tech entrepreneurs, we spotlight the voices that are shaping the future of work in Kenya.
Documentaries
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Entertainment
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Fixing The Nation
Fixing the Nation is a bold and groundbreaking show that will take an unflinching look at challenges facing the Kenyan society and the solutions that can move us forward. It is anchored by respected journalists Eric Lattif, Janet Mbugua, and Mariam Bishar. Podcast created by: Nation FM
Fixing the Nation
Fixing the Nation is a bold and groundbreaking show that will take an unflinching look at challenges facing the Kenyan society and the solutions that can move us forward. It is anchored by respected journalists Eric Lattif, Janet Mbugua, and Mariam Bishar
Full Episodes
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Gumzo La Sato
Gumzo La Sato is a live social issues show that aims to create awareness about issues affecting the larger society. The discussions range from Parenting, Marital bliss and struggles, Oppression, violence, and all matters of the Heart.
Health Diary
Health Diary is a weekly show that highlights different types of diseases/conditions and seeks ways to prevent, treat/manage them. The show debunks this through real life stories and also feature specialists in different fields, to offer medical advice on the same.
Letter To My Younger Self
Letter To My Younger Self is a podcast where guests get to write a letter to their younger self, from which Maxine formulates questions to ask them during the hour-long show.
Nation Reports
Nation Reports is a weekly podcast offers an opportunity for listeners to interact with various reporters and journey with them as they unravel the biggest most emotive stories.
Noma
NOMA is a gripping family drama that delves into the complexities of sibling rivalry, parental expectations, and the struggle for identity within a powerful business family In the heart of Nairobi, the Mwamba family stands as a beacon of success, with a thriving business empire built by the patriarch, MZEE AMAON MWAMBA. However, beneath the surface, the family is fractured by jealousy, unspoken desires, and the weight of expectations.
One Health Lens Podcast
Discussing health matters and human stories from Kenya and across Africa. We talk big picture from people to policy, ecosystems, and everything in between. Follow us on LinkedIn: https://www.linkedin.com/company/onehealthlens
Paradise Lost
Paradise Lost peeks through the story of Louis Otieno, the times, and everything in between.
Primetime
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Speaking of GEN Z
Speaking of Gen Z brings you entertaining but meaningful conversations about a generation that is trying to navigate through adulthood. Join hosts Michelle, Jackie and Esther as they unravel all things Gen Z.
Sport On
Sport-On is a 30-minute sports magazine show on NTV and 3 hours on NATION FM. The show seeks to give the sports “fanatics” and “funatics” comprehensive and in-depth coverage of sports both locally and internationally.
Tech-over
The extent of technological growth is beyond mere acknowledgment; it has seamlessly integrated into our daily existence. A few years ago, the notion of paying electricity bills through mobile money or recharging with 'tokens' in Kenya seemed inconceivable. Online product sales were considered distant, and artificial intelligence is rapidly reshaping various facets of our lives. Amidst these technological leaps, those with a solid understanding of tech can navigate challenges, seize opportunities, and build a sustainable livelihood. Tech over Show aims to be the platform facilitating discussions among thought leaders, innovators, tech companies, and the government, addressing challenges and opportunities in Kenya's thriving tech industry.
Thamani
Thamani is a business show which is dedicated to emerging issues regarding micro, small and medium size businesses.
The Politalk podcast
This is The Politalk podcast. Here we look into the ins and outs of everything Kenyan politics. We pull no punches and have no reason to sugarcoat anything that matters to Kenyans.
The Trend
A two-hour-long live show that airs on Fridays. The show focuses on what is current in the entertainment industry, controversial and popular across all media platforms targeting those aged between 25 and 35 years.
The trend podcast
The trend podcast highlights and captures the best of banter from #TTTT segment that airs every Friday on NTV. It's the TTTT EXTRA
The Wicked Edition
The Wicked Edition with Dr. King’ori seeks to address serious issues through humour and relatable wit. It is a two-part half hour show filmed in front of a live audience
Trending
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Twende
Twende is a travel show that highlights beautiful, unique, diverse locations, people, and cultures. The show offers fresh perspectives on familiar locations and memorable experiences in new ones.
Unscripted
This Saturday evening lifestyle show lets viewers share their stories and life experiences as openly & honestly for the purpose of shifting the culture of silence.
VIP Access
VIP ACCESS is Anyiko Owoko’s YouTube and podcast show on Music and Culture dedicated to promoting Africa’s most promising talent and creatives. This podcast grants you VIP access into timeless interviews while providing a platform for rising as well as established artists across the continent. Since launching in 2018, Anyiko has interviewed over 70 African music stars.
WADR
This weekly news show aims to have all sides of debate but not be constrained by it, listen to main voices in the contest but not allow them to hold the viewers hostage, entertain debate but allow push back with all due respect.
When death do us part
In this podcast, three widowers openly speak about the process of grief, how they found themselves exposed to the emotional turmoil of losing their wives, and how society still does not know how to deal with them.
Your World
Your World is a health, wellness and variety show. It provides a platform for audiences and experts to share their experiences on how to improve or manage health issues, across Kenya and the Africa region.