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(Sharecast News) - Drinks company Diageo said on Wednesday that chief executive officer Debra Crew has stepped down with immediate effect, by mutual agreement.
A comprehensive formal search process has already begun, Diageo said, which will include consideration of internal and external candidates.
Chief financial officer Nik Jhangiani will assume the role on an interim basis until a permanent appointment is made.
Crew took over in June 2023 after the sudden death of long-time CEO Ivan Menezes, having joined the company as a non-executive director in 2019 and later served as president of Diageo North America and subsequently as group chief operating officer.
Diageo said guidance for fiscal 2025 and 2026 remains unchanged from the third-quarter trading statement in May and full-year results will be published on 5 August as planned.
Chair John Manzoni said: "On behalf of Diageo and the board, I would like to thank Debra for her contributions to Diageo, including steering the company through the challenging aftermath of the global pandemic and the ensuing geopolitical and macroeconomic volatility.
"On behalf of all Diageo colleagues, I wish her every success in the future. The board's focus is on securing the best candidate to lead Diageo and take the company forward. We strongly believe Diageo is well placed to deliver long-term, sustainable value creation."
At 1440 BST, the shares were up 0.4% at 1,895.00p, having shot higher after the news was announced, hitting an intraday high of 1,972.50p.
Neil Wilson, UK investor strategist at Saxo Markets, said: "A profits warning less than six months into her tenure never set her on the right foot in the eyes of investors. Kitchen sinking maybe is normal for a new CEO to get bad news out early but the stock has not recovered and is about 40% below where it was when she unexpectedly took over from Menezes.
"They seem to be facing a cyclical downshift post-Covid and some problems with a structural shift in drinking habits...but both seem tied to inflation and cost of living as people have less to spend on drink."
Wilson said he feels there is a lot Diageo can do on branding and that he is not convinced by the "tobacco moment" argument for alcohol.
"It could be a good moment for the stock to turn round if they execute well especially as we are likely past peak tariff uncertainty," he added.