Diageo names new CFO as it recovers from profit warning

By Emma Rumney

LONDON (Reuters) -Diageo named Nik Jhangiani as its chief financial officer on Friday, with Lavanya Chandrashekar leaving after three years in the role at the world's largest spirits group.

Jhangiani, currently CFO at Coca-Cola Europacific Partners, will take up the position in the autumn of 2024, the maker of Tanqueray gin, Johnnie Walker whisky and Guinness beer said, without giving a reason for the change.

Chandrashekar, who was also previously CFO of Diageo's largest market, North America, will step down and return to the United States, the company said in a statement.

"I am proud to have overseen a strong period of growth for Diageo," said Chandrashekar.

Diageo Chief Executive Debra Crew, who took the helm in June last year, said she was grateful for Chandrashekar's contribution and excited about Jhangiani taking on the role.

"He is a highly experienced CFO with a proven global track-record of generating growth across multiple consumer businesses and industries," she said.

Diageo issued a profit warning last year amid a build up of unsold stock in Latin America that dented investor confidence.

Although some investor concerns have since eased, RBC Capital analyst James Edwardes Jones said that the warning still hangs over Diageo's shares which remain more than 16% lower than before November's announcement.

"Diageo's weak share price performance has, in part, reflected questions around financial communication and some perceived missteps from senior management," he said.

Diageo shares rose by more than 1.5% in early trading, outperforming the FTSE 100 index.

Crew said Diageo will continue to invest in its brands, create shareholder value and maintain its leading position.

Jhangiani, who said he looked forward to driving shareholder value at Diageo, has been CFO at the world's largest Coca-Cola bottler by revenues since 2016.

He has more than 30 years of finance experience in roles across the UK, Europe, India, Africa and the United States, with two decades spent in CFO roles and within the Coca-Cola system.

(Reporting by Chandini Monnappa in Bengaluru and Emma Rumney in London; Editing by Rashmi Aich and Alexander Smith)