Diageo Share Discussion Threads

[sundaymonday] 01/9/2010 17:15

OK so barley is up etc.

But when you realise that the production cost of a typical bottle of whisky is maybe $1-2 but sells @ wholesale for $15 or so, the fact that one of the ingredients costs a bit more becomes less significant.

[wad collector] 01/9/2010 17:05

Ashley J - I said good , not wonderful.Net profits up and divi up is good in 2010.

The above Times advice was ;
Global drinks producer, Diageo, have released figures that are satisfactory but not very inspiring. Sales are up 2% and 3% on market spend. In terms of short-term prospects, you could do better. But credit where credit is due, the group emerged relatively unscathed from the depths of the economic downturn and their stable, steady growth could be worth a look for longer-term investors. Buy with caution.


Actually it was cider not Pernod.

[nellie1973] 27/8/2010 18:02

Tipped in press-BUY with caution

[ashley jones] 26/8/2010 10:09

Results good ??? what have you been drinking? pernod?

[wad collector] 26/8/2010 08:33

Results good ..but not good enough looking at the share price

[nellie1973] 11/8/2010 09:23

Broker upgrade

[ashley jones] 09/8/2010 11:46

Be very careful

[gateside] 26/7/2010 23:31

But IC have a very good pin!

[wad collector] 26/7/2010 17:42

As good as a pin.

[wad collector] 26/7/2010 12:59

Oh no , the IC tip , quick , sell now..

[nellie1973] 24/7/2010 13:58

Tipped in Investors Chronicle

[nellie1973] 03/7/2010 19:49

Broker upgrade

[strollingmolby] 01/7/2010 11:59

Hmmm, holding maturing whisky spirit as assets for the pensioners - how many bottles will each pensioner be sent each month ? ;o)

Sorry for going (slightly) O/T.

[ariane] 01/7/2010 11:39

Statement re Pension Deficit Funding



TIDMDGE

RNS Number : 5871O
Diageo PLC
01 July 2010

?

1 July 2010
Diageo announces 10 year funding arrangements for UK Diageo Pension Scheme
Diageo has today announced that agreement has been reached with the Trustee of
the UK Diageo Pension Scheme (the UK Scheme) on a 10 year funding plan. At the
time of the triennial actuarial valuation at 1 April 2009 the deficit of the UK
Scheme was GBP862 million. This triggered a requirement to put in place the 10
year funding plan which has been announced today.
Key points of the agreement include:
� GBP197 million which was agreed under the 2006 funding plan has been
transferred to the UK Scheme.
� A pension funding partnership will be formed (the PFP), which will hold
maturing whisky spirit as assets. This structure will generate an income to the
UK Scheme which is expected to total GBP25 million each year over the term of
the PFP. The PFP is expected to be in place for 15 years after which time the
Trustee will be able to sell its PFP interests to the company for an amount
expected to be no greater than the deficit at that time, up to a maximum of
GBP430 million.
� The company will further underwrite the reduction of the UK Scheme deficit
through an agreement to make conditional cash contributions into escrow
totalling GBP338 million if an equivalent reduction in the deficit is not
achieved over the 10 year term.
� It is expected that the annual payments to the UK Scheme of GBP25 million
together with payments which are anticipated under the agreement currently being
negotiated in respect of the Guinness Ireland Group Pension Scheme will be
broadly cash flow neutral against the GBP50 million per annum which has been
paid in respect of the UK Scheme since 2007. These arrangements will have no
impact on the value of Diageo's net assets.
Further details:
Diageo has released GBP197 million to the UK Scheme under the 2006 funding plan.
This comprises GBP147 million released from escrow and an additional GBP50
million paid directly. In addition Diageo and the Trustee will establish a
pension funding partnership. Diageo will contribute at least GBP430 million to
the PFP, GBP367 million of which will be paid to the UK Scheme which the Trustee
has decided to invest in the PFP, with the balance paid directly into the PFP by
Diageo companies.
These capital contributions will be used to invest in maturing whisky spirit.
The PFP will generate an annual income to the Trustee anticipated to be GBP25
million. The PFP's investments in the maturing whisky spirit will provide the
Trustee with collateral against Diageo's current funding obligations to the UK
Scheme. The investment will be made via option arrangements, allowing Diageo to
retain effective control over the maturing whisky spirit.
The PFP will be consolidated in the Diageo group accounts and is intended to
remain in place for 15 years, after which time the Trustee may sell its
investment in the PFP back to Diageo for an amount expected to be no greater
than the remaining deficit in the UK Scheme, up to a maximum of GBP430 million.
Diageo will continue to make annual contributions in respect of its employees'
future pensions benefits under the UK Scheme, of approximately GBP50 million
annually.
The triennial valuation was carried out during an unusually volatile period for
global capital markets and the significant deficit at that time was partly as a
result of historical lows in asset values and interest rates. The funding plan
includes an allowance for the UK Scheme's deficit to close at a faster rate than
expected under the Trustee's valuation assumptions. This allowance is backed by
conditional cash contributions, up to a maximum of GBP338 million, which will be
paid into escrow and which will transfer to the UK Scheme at agreed dates if the
deficit is not reduced as anticipated over the 10 year term.
Following separate negotiations with the Irish Scheme Trustee, Diageo has
provisionally agreed a deficit funding arrangement in respect of the Guinness
Ireland Group Pension Scheme (the Irish Scheme). This agreement is subject to
regulatory approval. This deficit funding arrangement is anticipated to result
in additional initial contributions to the Irish Scheme of approximately EUR21
million (GBP17 million) annually over a period of 18 years, provision for
further deficit closure supported by conditional cash contributions if the
anticipated deficit closure is not achieved, and the Irish Scheme having access
to a contingent asset.
- Ends

[wad collector] 04/5/2010 08:26

Last weeks Telegraph: Buy


Questor share tip: Diageo has the spirit brands worth buying

[waldron] 20/4/2010 12:44

EARNINGS PREVIEW: European Drinks Makers To Show Worst Is Over
By Michael Carolan
Of DOW JONES NEWSWIRES
TAKING THE PULSE: Europe's drinks producers will update on recent trading in the coming month and are expected to demonstrate that the worst of the recession is over, at least when it comes to sales volumes.

Sales figures from Europe's brewers and distillers are expected to benefit from extremely weak comparatives last year, when a combination of customer destocking of inventories and weak consumer confidence hit demand.

Analysts will look for evidence that consumer spending trends have started to improve in the developed world. The resilience of emerging markets compared with Europe and the U.S. will benefit those with exposure there.

The weak comparative figures may disguise what has been a poor quarter for beer producers, with some volume growth in emerging markets offsetting further drops in Europe.

The world's largest spirits makers Diageo and Pernod Ricard meanwhile are expected to post some encouraging figures showing volume growth for the first time in more than a year.

Recent industry data has pointed to stagnant growth in Europe, but signs of recovery in the U.S.

COMPANIES TO WATCH

Heineken Holdings NV (HEIO.AE) - Apr. 21 0500GMT

MARKET EXPECTATIONS: Heineken is expected to report a 2.3% decline in organic revenue in its first quarter trading update. Beer volumes are expect to decline 4% organically to 24.5 million hectoliters according to a Dow Jones Newswires survey of four analysts. Analysts expect lower volumes in the Americas due to consumers shifting to non premium brands, and lower volumes in Central and Eastern Europe due to duty increases.

MAIN FOCUS: Analysts will be focusing on the impact of raw material and energy prices and looking for news on cost cutting. They don't expect Heineken to give full year earnings guidance.

Pernod Ricard SA (RI.FR) - Apr. 29 0500GMT

MARKET EXPECTATIONS: The French spirits and wine group updates on its third quarter sales and is expected to post a strong rebound from last year. Underlying sales are seen about 10% higher for the latest quarter against easy comparative numbers last year, when sales dropped 12% due to customers destocking their inventories.

MAIN FOCUS: Pernod has already indicated that January was a very good month for sales and analysts expect this to be true of the quarter as a whole, as trading returns to normal following last year's disruptions. A strong performance may be considered a turning point in Pernod's fortunes. Recent industry data suggests U.S. sales are improving, while Europe should show some recovery despite some tough markets. Asia meanwhile will benefit from a later Chinese new year this year. The sales growth will be driven by volumes but analysts will look for comments on the pricing environment to see whether the recovery can be sustained. Analysts will also look to see if marketing spend will continue to rise in support of brands.

Anheuser Busch InBev (ABI.BT) - May 5 0500GMT

MARKET EXPECTATIONS: Anheuser-Busch InBev (ABI.BT) is expected to report weak first-quarter results. Sales in the U.S., its biggest market, are expected to be sluggish, weighed down by the country's high unemployment rate and struggling economy. Higher costs, including options expenses for executive compensation, may also eat into profits during the quarter, analysts say. Sales in Latin America are expected to be strong, as a minimum wage boost earlier this year should help buoy beer consumption. But heavy rainfall in March will also dampen sales, analysts say, as people stayed inside and drank less.

MAIN FOCUS: The company said in March that Ebitda growth in 2010 would start out at a "low single digit" rate and increase progressively throughout the year. Investors will want to know whether that projection is on track, or whether weakness in the U.S. will subdue expectations for improvement later in the year.

Diageo PLC (DEO) - May 6 0600 GMT

MARKET EXPECTATIONS: The world's largest spirits company posts its third quarter trading update on May 6. Like its smaller rival Pernod Ricard, Diageo is expected to return to more normal trading. Third quarter sales are expected to rise by 4%-8%, after falling by 7% in the same period last year.

MAIN FOCUS: Analysts will look closely at the figures to make sure there is a genuine improvement in trading rather than just a recovery from last year's figures, which were hit by the one-off impact of industry destocking. Analysts will also look for any change to the company's guidance for low single digit organic operating profit growth for the full year. The company has already started talking about "green shoots" of recovery, particularly in the U.S., but has a much lower exposure than Pernod to growth markets like China. With the pricing environment still tough, analysts will look to the brief statement for indications growth can be maintained. A recent analyst presentation suggests the trend for customers to trade up to more expensive brands will return in time.

Carlsberg (CARL-A.KO) - May 11 0500 GMT

MARKET EXPECTATIONS: Carlsberg is expected to post a net loss of DKK190 million in the first quarter according to an early Dow Jones Newswires and Factset survey of four analysts, compared to a loss of DKK212 million last year. Sales are seen coming in at DKK10.96 billion.

MAIN FOCUS: Carlsberg's first quarters are traditionally small and loss-making and do not provide significant read-across for the full year. Eyes will be on the troubled Russian and Eastern European beer markets and on whether Carlsberg has managed to pass on a tax increase to consumers. Analysts say the company's estimates appear low and remain confident that full year guidance will be reiterated. In February, Carlsberg said it expects net profit growth of more than 20% this year.

SABMiller PLC (SAB.LN) - May 20 0600 GMT

MARKET EXPECTATIONS: The world's second largest brewer reports its full-year results and is expected to post earnings per share of 164 cents, up from 137 cents the previous year.

MAIN FOCUS: The company has already said that full-year lager volumes were flat, so all eyes will be on the group's margin figures and outlook for the coming year. It is suffering from a sluggish consumer environment in its mature markets like South Africa and the U.S. and the effect of large tax hikes in emerging markets like Colombia. It is however benefiting from falling input costs as commodity prices ease. Analysts will look closely at SAB's performance in South Africa where it is facing increasing competition from a Heineken/Diageo joint venture.

-By Michael Carolan, Dow Jones Newswires; [phone]; [e-mail] (Matthew Dalton, Johan Anderberg and Bart Koster contributed to this report.)

[wad collector] 31/3/2010 12:17

The £11 level didn't provide much resistance after all ; this is following a remarkably steady growth over the last 18 months .It appears to be safely back to pre-crash levels - wish I could say the same about the rest of my portfolio.

[ronjen] 26/3/2010 18:32

Nomura Securities has reiterated its 'buy' recommendation on Diageo after a presentation from the drinks company's US marketing director which emphasised the enduring importance of brands in the spirits trade.

Diageo believes that the worst of the recession is over for the US drinks industry which should herald a return of enthusiasm for premium brands.

The company is planning to produce variations on its standard lines, such as Captain Morgan branded Long Island Ice tea offerings, and is also investing in new premium products such as Swedish vodka Rokk and so-called super-premium products such as Ciroc vodka.

'We see the introduction of new products [in the vodka category] as designed to protect existing price points in a category where top end pricing is under pressure, e.g. Ursus at under $12 should protect Smirnoff at $13+, and Rokk at high teens will compete against Pernod's Absolut brand and also provide protection for super-premium brands like Ciroc and Ketel One at over $20,' Nomura suggests.

'Some other spirits companies criticise Diageo for throwing too many new products out into the market,' notes Nomura. 'On the other hand, this does show a strong commitment to innovation,' the broker argues.

[clogue] 18/3/2010 08:36

Another million pounds worth sold by Walsh.
I bet he can't believe his luck, selling at an all time high with the results he's just put out.
From memory this brings director selling to close to £10m since these reached £10.
PE at almost 16, with no growth, I think it's time to sell some calls.

[wad collector] 16/3/2010 21:35

£11 will presumably provide a bit of resistance , but I think I am going to ride this one a bit longer.