Diageo Share Discussion Threads

[essentialinvestor] 07/12/2023 12:44

Main question now is whether there will be another guidance reduction.
Next update will clarify.

[essentialinvestor] 06/12/2023 17:39

Yes tske the point, i tske no notice of what they think, generally, as they can alter a forecast in the blink of an eye.

[redartbmud] 06/12/2023 17:36

EI

I do agree with the comment, but I am well aware that the broker notes that are issued can contain an unreasonable bias when compared to the fundamentals of the business, which may be less extreme than is suggested in the text.

red

[essentialinvestor] 06/12/2023 16:55

Tbf it was a recent warning, of which beforehand the market had expected higher pre tax and EPS, consensus currently at £1.53/54 area.

[philanderer] 06/12/2023 16:33

red, I think you're spot on :-)


'Spirits giant Diageo seeking to sell some Irish beer brands including Smithwick’s – reports'

[redartbmud] 06/12/2023 16:09

When they have driven the price down enough, it will be rated, by some miracle, as a buy!!
As they jump in for their clients.

Cynical from Crewe.

red

[philanderer] 06/12/2023 15:13

UBS cuts Diageo to 'sell' (neutral) - price target 2,650 (3,650) pence


Guinness-to-Smirnoff drinks giant Diageo remained under pressure after last month’s profit warning.

Shares fell 31.5p to 2781p on UBS’s “sell” recommendation as analysts at the Swiss bank said they favoured Anheuser-Busch InBev and London-listed bottling firm Coca-Cola Hellenic, which cheered 29p to 2255p.

[philanderer] 04/12/2023 10:58

RBC cuts Diageo price target to 2,500 (2,700) pence - 'underperform'

[essentialinvestor] 29/11/2023 17:54

FY EPS consensus continues to be cut, down to £1.53 atm.

[jubberjim] 29/11/2023 15:46

Grabbed some more down here

Xmas is coming might even be early

Cheers

[billy two cocks] 29/11/2023 15:09

Also heavily short EUR/GBP and expecting EUR to be obliterated, the Eurozone have run out of people to borrow money off.

Been building this for a good while and slightly underwater/break even at present but with positive overnight CFD funding, the inevitable can take as long as it likes.

[billy two cocks] 29/11/2023 15:07

Looks like £25 is on the cards.

To be blunt, this will have to go significantly below £25 for me to buy back my holding, sentiment is strongly south here and the whole FTSE 100 looks toppy, GBP is becoming stronger by the day.

I bought a load of these for about 17p a while ago and just added a few today.



It's oil, it's AIM but the ex Tullow crew are onboard (with decent holdings) and I'm expecting great things. Cash sitting on balance sheet. Do your own research, blatant ramp.

Good luck

BTC

[philanderer] 29/11/2023 10:03

JPMorgan cuts Diageo to 'neutral' (overweight) - price target 3,500 pence

[chc15] 23/11/2023 11:33

Lol these broker notes, pure trash. That said I have opened a small position here.

[philanderer] 23/11/2023 10:29

HSBC cuts Diageo price target to 3,600 (4,000) pence - 'buy'

[mcunliffe1] 22/11/2023 18:29

Toffee: assuming your question was not rhetorical, the 2023 annual report for Diageo on page 40 shows a graphic that states Europe accounts for 21 % of total sales. It appears to me that the UK accounts for 28% of Europe's sales - hence 5.88% of world total.

But, remember the market reaction to a 20% drop in the LAC region - which accounts for 11% of the worldwide sales.


Having looked at their report in some detail I cannot understand why the share price tanked. Sales are up across the board between 2022 and 2023. So, 2023 may be a tough year but the fundamentals seem fine to me.

[essentialinvestor] 22/11/2023 17:10

Back towards £29?.

[toffeeman] 22/11/2023 16:20

What percentage of D's total revenue and profit do you think UK accounts for :)?

[mcunliffe1] 22/11/2023 15:34

Alcohold duty held. No rise.
Hunt's Autumn Statement.
Has to be good news for DGE.

[mcunliffe1] 21/11/2023 12:35

Not much of a cost Essential if you brew to a point where ethanol isn't created in the first place.

I'm struggling to get a handle on the volumes of alcohol so removed and the purposes of that in other industries but I suspect their cost of removal will be greatly offset by the alcohol so recovered.

Looking at why Diageo is suffering in the Caribbean (although South America is in the same region as Caribbean for DGE's purposes) there are a great many popular brands of beer now available. Red Strip, Carib, Banks - none are DGE brands.

I remember a holiday way back about 1980/81 - wife and I in the Bahamas. We got a taxi to the local beach. It was Bahamian Independence Day - 10 July. Placed was rammed, not a white face to be seen. Went to a stall to buy a beer and was offered a Guiness ONLY. They wouldn't take any money saying it was a thankyou for getting their independence from Britain where they'd figured we were from. It was a little uncomfortable. I drank the Guiness and we left - on foot - as all the taxis were stopping there for the day. A New Yorker, in a passing car offered us a lift on the basis only mad dogs etc would be out in the midday sun. Never drunk Guiness in the Caribbean since.

[mcunliffe1] 21/11/2023 12:12

Check this site out. Scroll down to the Novel Solutions section about 60% of the way down:



Innovative ideas there. A keg with a dense version of beer, just awaiting the addition of water, CO2 and - maybe - alcohol.

One of those systems in a bar would cost far less for the brewer to transport the product (no water) and would facilitate dual pricing at the pump in much the same way petrol is sold at a higher price for Super Unleaded than for cheap unleaded.

The Future?

[pete160] 21/11/2023 12:08

I could do it for free :-)

[essentialinvestor] 21/11/2023 11:50

There's a cost to remove the alcohol.

[laurence llewelyn binliner] 21/11/2023 11:43

#MCunliffe1, if DGE have locked onto a product where they can sell it twice, we are invested in the right company, but I will stick to the full phat Guinness.. :o)

[mcunliffe1] 21/11/2023 11:01

pete, you are probably right about the branding aspect.

It is my understanding that the alcohol removed froom the zero (or low-alc) products is sold on for commercial use, hence raises a further income stream.

The duty of course does not apply to the zero version. There is therefore no benefit to the end consumer only to the retailer/brewer.

Remember when vat was removed from electronic books - aka Amazon online Kindle books? They would prior to vat removal, offer deals on books at £0.99

Then, after vat was removed we expected deals at £0.83. Didn't happen.

Te UK book industry is reckoned to produce a total profit of about £600m. The vat savings are estimated to generate about £200m. Split between the publishers and the retailers that's a hell of a boost to the industry - at the expense of the reader.

The brewers are doing the same as the publishers/book sellers.