Has the turnaround finally started for Diageo shares?

Diageo’s stock turnaround question is tied to recent operational and balance-sheet moves under new CEO Sir Dave Lewis, who took charge in January. The article notes that Diageo shares are down about 62.5% from their highs, and that the company cut its dividend for the first time in decades, adding to investor pressure. In response to those issues, Diageo agreed to sell its stake in East African Breweries to Asahi for roughly $2.3 billion and is pursuing a $300 million-plus cost-savings programme. While revenue growth is modest, it rose 0.3% with volumes up 0.4%, which the article says coincided with the shares rebounding from a March low near 1,363p to above 1,600p before settling around 1,500p. The company’s net debt was $21.7 billion in an interim update, and the dividend cut is framed as freeing cash to reduce debt. The piece also references Morgan Stanley’s estimate that GLP-1 use could cut alcohol consumption by up to 75% among patients.