Diageo investors could soon “push for new leadership” leaving the alcohol giant’s CEO left “fighting to keep her job” following its plummenting share price, say analysts.
The prediction was made by AJ Bell analyst Russ Mould who described the Guinness owner’s recent performance as having “gone from bad to worse”, reported The Grocer.
Mould continued: “Diageo has gone from bad to worse…it can dress up the numbers all it wants, but it’s clear that something major has to change.
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“Following the latest sell-off, Diageo’s share price is now trading at a seven-year low. That’s the market’s way of saying it is thoroughly unimpressed with the business… Debra Crew will be fighting to keep her job as chief executive.
“If the board doesn’t do something, one can expect activist investors to circle Diageo and push for new leadership.”
The analyst’s comments come on the back of a turbulent past year for the alcohol giant, Last week, boss Crew hailed Diageo’s performance as “resilient” following the revelation its half-year sales had dipped.
Recently it was identified by analysts as a prime target for a takeover attempt, after it revealed it was set to sell a series of spirit brands, to focus on its ‘core’ brands.
Since then, it has sold sold two spirit brands in its portfolio, Pampero rum and Safari fruit liquor, however it is understood not have made any further decisions. It was reported to be exploring the sale of its Pimms brand earlier this year.
