Diageo Share Discussion Threads

[broadwood] 26/1/2017 09:05

Drinks giant Diageo's reported net sales at £6,421m and operating profit of £2,065m were up 14.5% and 28.0% respectively in the six months to the end of December, reflecting accelerated organic growth and favourable exchange.

The group saw organic growth, across all regions, with 1.8% volume growth and 4.4% net sales growth.

Organic operating profit grew 4.4%, in line with top line growth, driven by gross margin improvement.

Free cash flow continued to be strong at £1,084m, increasing by £245m compared to the prior period with net cash from operating activities up £230m to £1,267m.

The interim dividend is up 5% at 23.7p per share.

Chief executive Ivan Menezes said: "We have delivered a strong set of results with broad based improvement in both organic volume and top line growth and this positive momentum demonstrates continued effective execution of our strategy.

"Highlights this half include improved performance in our US Spirits business and across our scotch portfolio, driven by our focus on marketing with impact, innovating at scale, expanding our route to consumer, and winning in reserve.

"Progress on productivity supports growth, margin improvement and consistent strong cash flow generation as well as improving our agility.

"Diageo is building a stronger, more consistent, better performing company.

"We are identifying consumer trends faster, expanding the reach of our products across markets and developing trade channels to capture these growth opportunities.

"Our productivity work is on track, driving efficiency and effectiveness across the business. Our work on trade and marketing spend gives us better data enabling smarter, quicker decisions that generate higher returns.

"Our expectations of delivering stronger financial performance this year are unchanged. We are confident of achieving our medium term objective of consistent mid-single digit top line growth and 100bps of organic operating margin improvement in the three years ending 30 June 2019."

[broadwood] 26/1/2017 08:49

Confident statement. Held these for eight years with few concerns. Heading to all time highs.

[nimbo1] 26/1/2017 08:26

what I have gained on diageo today I have given back with unilever

[philanderer] 25/1/2017 18:02

Interims tomorrow

[tim 3] 25/1/2017 11:13

Looks like a bear flag on the daily.Hope not!

[philanderer] 24/1/2017 17:34

24th jan JP Morgan overweight tp 2500p

[philanderer] 23/1/2017 16:47

23rd jan Liberum hold tp 2182p
23rd jan Whitman Howard hold tp 2250p
23rd jan Barclays equal weight tp 2285p

reiterations

[jdb2005] 01/1/2017 19:29

Have decided to buy on dips in 2017 - think we will see further mergers in this sector.

[philanderer] 09/12/2016 11:25

Jefferies reiterating their 'buy' today.

[essentialinvestor] 08/12/2016 06:35

A 3% yield for DGE is often a decent buy area, in very general terms.

Trump may tweet about the cost of spirits today ).

[philanderer] 07/12/2016 23:38

More or less a 3% yield now on an unchanged dividend.

[losos] 07/12/2016 11:53

EI - Cash in the kity a tad low right now so hoping for sub £19 ha ha (Tight git that I am!!)
But you are right, share price was OTT but in more respectable territory now.

[essentialinvestor] 07/12/2016 09:24

Got some just under 19.50 this AM, may be I am missing something here as
this looks value to me.

[jimbowen30] 02/12/2016 11:11

EI - bought an initial stake too in one of the portfolios

[essentialinvestor] 02/12/2016 08:53

Added another few.

[philanderer] 25/11/2016 09:36

25th nov Berenberg buy tp 2140p cut from 2400p
25th nov Credit Suisse outperform tp 2370p

[essentialinvestor] 24/11/2016 08:51

A strike just before Christmas, lovely!.

[philanderer] 22/11/2016 09:59

Drinks giant Diageo faces its workers going on strike just four weeks before Christmas after staff voted in favour of industrial action over proposed cuts to their pensions. Members of the GMB Scotland union, which include those working at bottling plants at Leven and Shieldhall and distilleries across the country, backed the walkouts by 63pc and other forms of industrial action by 69.7pc. - Telegraph

[philanderer] 21/11/2016 09:38

Tempted to get back in .

Jefferies taking the red pencil to the drinks sector this morning keeping the 'buy' but cutting the tp from 2600p to 2300p.

[essentialinvestor] 17/11/2016 11:00

Only managed to get about half of the shares I wanted as hoped lower
prices would be available, that looks unlikely, at least for now.

[essentialinvestor] 15/11/2016 11:31

Below 19.60 for my next lot, if that price is available, got close yesterday.

[alcoholtradebuyer] 14/11/2016 20:21

1800 possilble buy point.

[essentialinvestor] 11/11/2016 14:03

Got some just under 19.60, still not cheap imv.