Diageo Completes Sale of Its Guinness Nigeria Share to Tolaram

Core Viewpoint - Diageo plc has completed the sale of its 58.02% shareholding in Guinness Nigeria PLC to Tolaram, aligning with its growth ambitions and asset-light operating model [1][2][3]. Group 1: Transaction Details - The sale was announced on June 11, with Tolaram purchasing shares at a price of 81.60 NGN per share [3]. - Tolaram, a major consumer packaged goods company, will manage the production and distribution of Guinness in Nigeria under a license and royalty agreement [3]. Group 2: Strategic Initiatives - Diageo aims to achieve $2 billion in productivity savings from fiscal 2025 to fiscal 2027, building on $0.7 billion in savings realized in fiscal 2024 [4]. - The company is focusing on enhancing its product portfolio and supply-chain agility to support growth despite soft volume [5]. Group 3: Financial Performance - Diageo has seen a 13.3% increase in share price over the past three months, outperforming the industry average growth of 11% [5]. - The growth in price/mix has been driven by price increases across all regions, contributing positively to the company's financial performance [5].