DIAGEO PLC - DGE - Isin GB0002374006

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Diageo PLC is an alcoholic beverage company.

The Company operates in various categories, including spirits and beer.

The Company’s geographic segments include North America, Europe, Asia Pacific, Africa, America and Caribbean and Supply Chain and Procurement (SC&P).

The Company’s principal products include Scotch whisky, Gin, Vodka, Rum, Beer, Irish Cream Liqueur, Wine, Raki, Tequila, Canadian Whisky, American Whiskey, Progressive Adult Beverages, Cachaca, Brandy and Ready to Drink.

Its brands include Johnnie Walker, Crown Royal, J&B, Buchanan’s and Windsor whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

It also produces a range of ready to drink products mainly in the United Kingdom, Italy, South Africa, Australia, the United States and Canada.

The Company has approximately 200 brands, including old and new, large and small, global and local, with brands sold in approximately 180 countries.

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Diageo's (LON:DGE) Dividend Will Be Increased To £0.4682

Diageo plc (LON:DGE) has announced that it will be increasing its dividend from last year's comparable payment on the 20th of October to £0.4682. The payment will take the dividend yield to 2.0%, which is in line with the average for the industry.

Diageo's Payment Has Solid Earnings Coverage

Unless the payments are sustainable, the dividend yield doesn't mean too much. The last dividend was quite easily covered by Diageo's earnings. This means that a large portion of its earnings are being retained to grow the business.

The next year is set to see EPS grow by 38.7%. If the dividend continues along recent trends, we estimate the payout ratio will be 40%, which is in the range that makes us comfortable with the sustainability of the dividend.

Diageo Has A Solid Track Record
The company has an extended history of paying stable dividends. Since 2012, the dividend has gone from £0.404 total annually to £0.762. This works out to be a compound annual growth rate (CAGR) of approximately 6.5% a year over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

We Could See Diageo's Dividend Growing

Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Diageo has grown earnings per share at 5.7% per year over the past five years. The company is paying a reasonable amount of earnings to shareholders, and is growing earnings at a decent rate so we think it could be a decent dividend stock.

We Really Like Diageo's Dividend

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

https://finance.yahoo.com/news/diageos- ... 10992.html

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Diageo plc (LON:DGE) is about to trade ex-dividend in the next 3 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Accordingly, Diageo investors that purchase the stock on or after the 25th of August will not receive the dividend, which will be paid on the 20th of October.

The company's next dividend payment will be UK£0.47 per share. Last year, in total, the company distributed UK£0.76 to shareholders. Based on the last year's worth of payments, Diageo stock has a trailing yield of around 1.9% on the current share price of £39.6. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Diageo is paying out an acceptable 54% of its profit, a common payout level among most companies. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It paid out more than half (61%) of its free cash flow in the past year, which is within an average range for most companies.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

https://finance.yahoo.com/news/diageo-p ... 00476.html

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28 July 2022

DIAGEO FULL-YEAR SALES JUMP 21.4%

(Sharecast News) - Drinks maker Diageo reported a jump in full-year sales on Thursday thanks to "resilient" demand and price increases.

Net sales rose 21.4% to £15.5bn, with double-digit growth across all regions. The performance reflects the continued recovery of the on-trade business, resilient consumer demand in the off-trade and market share gains, Diageo said.

Reported operating profit was up 18.2% to £4.4bn.

Diageo said growth was broad-based across categories, with particularly strong growth in scotch, tequila and beer. Premium-plus brands contributed 57% of reported net sales and drove 71% of organic net sales growth.

The company said price increases and supply productivity savings more than offset the absolute impact of cost inflation, and mostly offset the adverse impact on gross margin.

Chief executive Ivan Menezes said: "We benefitted from the on-trade recovery, continued global premiumisation trends, with our super-premium-plus brands up 31%, and from price increases across our regions. I am particularly proud of the performance of Johnnie Walker, which delivered double-digit growth across all regions to surpass 21 million cases globally. This fantastic milestone exemplifies our world-class brand-building and execution capabilities.

"Looking ahead to fiscal 23, we expect the operating environment to be challenging, with ongoing volatility related to Covid-19, significant cost inflation, a potential weakening of consumer spending power and global geopolitical and macroeconomic uncertainty. Notwithstanding these factors, I am confident in the resilience of our business and our ability to navigate these headwinds."

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Diageo North America Named to the Top 10 Best Companies for 2022

NEW YORK, September 21, 2022--(BUSINESS WIRE)--Championing Inclusion and Diversity is central to our Performance Ambition, and this means supporting our employees in every aspect of their wellbeing and family life.

Seramount (formerly Working Mother Media), part of EAB, announced its list of 2022 100 Best Companies, including Diageo North America in its Top 10. This is Diageo’s 13th year to be included in this list. Diageo was recognized for its ground-breaking, gender neutral parental leave program, its market-leading Menopause Guidelines, and our increased mental health benefits for employees.

In addition to this honor, Diageo North America has been recognized by Seramount as a Top Company for Executive Women, a 2022 Best Company for Multicultural Women and a 2022 Best Companies for Dads.

"We are committed to having market leading policies and practices that support all our people and help them thrive," said Laura Watt, EVP, Human Resources, Diageo North America. "As part of this commitment, we are nurturing a forward-thinking culture with progressive programs on parental leave, multicultural hiring and advancement, and a focus on mental health and wellbeing."

Core to the company’s Society 2030 10-year ESG action plan, Diageo believes the most inclusive and diverse culture makes for a better business and a better world; so Diageo will champion inclusion and diversity across its business, with its partners and communities, celebrating diversity and helping to shape a more tolerant society.

Diageo aims to create an environment within its business where every individual feels a sense of belonging and can thrive and contribute to their fullest.

https://finance.yahoo.com/news/diageo-n ... 00771.html

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Diageo plc

Transaction in Own Shares

10 November 2022

Diageo plc ('Diageo') announces that on 10 November 2022 it has purchased 208,852 of its ordinary shares of 28 101/108 pence each on the London Stock Exchange and other recognised investment exchanges from Merrill Lynch International as follows.

Such purchase was effected pursuant to instructions issued by Diageo on 01 November 2022, as announced on 01 November 2022

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Here's Why Diageo (DEO) Stock is Worth a Watch at This Time

Diageo Plc DEO is a stock to watch, given its business momentum on continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains. DEO is anticipated to retain the strength in its business on constant premiumization efforts and favorable industry trends, particularly in the spirits category. Its organic net sales were up 21.4% year over year in fiscal 2022.

Recovery in the on-trade channel in North America and Europe, and the partial recovery in Travel Retail have been aiding the price/mix for a while. Diageo’s positive mix also resulted from the robust performance of its super-premium-plus brands, particularly scotch, tequila and Chinese white spirits.

Factors Aiding Growth

Diageo is well-poised for growth from effective marketing and exceptional commercial execution. It is likely to invest strongly in marketing and innovation, and leverage its revenue growth management capabilities, including strategic pricing actions. This is likely to support DEO in the near and the long term.

DEO’s margin trends were favorable in fiscal 2022 owing to its premiumization efforts, rebound in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. Diageo delivered £380 million of productivity savings in fiscal 2022, driven by COGS productivity and marketing effectiveness. Its operating profit improved 18.2% in fiscal 2022, led by robust organic operating profit growth.

Although Diageo expects the operating environment to be challenging in fiscal 2023, it remains confident about its business resilience and its ability to navigate the headwinds. DEO is confident about the long-term growth potential of the total beverage alcohol sector and expects to expand its value share by 50% in the sector to 6% within 2030.

Diageo is on track to deliver on its medium-term guidance for fiscal 2023-2025, wherein it targets organic sales growth of 5-7% and an organic operating profit rise of 6-9%.

For fiscal 2023, Diageo expects net sales growth across North America, Europe and the Asia Pacific. However, the growth rate is likely to moderate from the fiscal 2022 level due to the robust on-trade recovery witnessed in fiscal 2022. It anticipates continued organic operating margin growth in fiscal 2023, aided by strong premiumization trends and operating leverage despite constant investment in marketing. DEO expects an effective interest rate of 3.5% for fiscal 2023.

Hurdles to Overcome

Diageo suffers persistent inflationary pressures, induced by higher commodity costs, particularly agave, energy expenses and supply disruptions. As a substantial portion of Diageo’s business comes from international operations, exchange rate fluctuations have been hampering its sales for a while.

In fiscal 2023, Diageo expects to invest continually in marketing and innovation, particularly in North America. Moreover, it expects continued impacts of rising inflationary pressures to partly hurt margins.

DEO also remains susceptible to adverse currency rates. While the weakening of sterling against the U.S. dollar and some impacts of emerging market currencies look favorable, Diageo expects adverse currency impacts from hyperinflationary economies, primarily Turkey.

https://finance.yahoo.com/news/heres-wh ... 06795.html

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Diageo and Encirc to start producing world’s first net zero glass bottles at scale

Multinational beverage and spirits company, Diageo, has partnered with glass bottle manufacturer Encirc to start production of world’s first net zero glass bottles at scale by 2030.

As part of their broad agreement, Encirc will build new furnaces at its Elton plant in Cheshire that will utilize green electricity and low-carbon hydrogen that will help reduce emissions from glass bottle manufacturing by 90%.

The hydrogen will be supplied by Vertex Hydrogen, a partner of the government-backed HyNet North West cluster, and when combined with carbon capture technology could deliver net-zero glass bottles by 2030.

The furnaces are expected to be fully operational by 2027 and will produce up to 200 million Smirnoff, Captain Morgan, Gordon’s, and Tanqueray bottles annually by 2030.

Joe Seifert, CEO of Vertex Hydrogen, said: “We are delighted to be supporting Encirc and Diageo with low carbon hydrogen as the UK continues to lead the world to deliver tangible decarbonization at pace and scale.”

The move by Diageo is part of its The Society 2030: Spirit of Progress 10-year plan to reduce carbon emissions across its supply chain by 2030.

The owner of Johnnie Walker, Crown Royal, and Guinness also aims to produce up to 200 million net-zero bottles for its Smirnoff vodka, Captain Morgan rum, Gordon’s gin, and Tanqueray gin brands, by the same time frame.

The two companies together with Encirc’s partner Glass Futures have previously worked on a process that used waste-based biofuel-powered furnaces to reduce the carbon footprint of the bottle-making process by up to 90%. In total, 173,000 bottles were made using 100% recycled glass during a trial period.

Ewan Andrew, president, of global supply and procurement and chief sustainability officer at Diageo, said: “We are excited to be a part of this world-leading announcement, which forms part of our commitment to halve our Scope 3 carbon emissions by 2030.

“All renewable energy options are important to us, and we’d like to see government and industry further accelerating the direct supply of green energy as a mainstream option. Ultimately, we look forward to a world where people can enjoy their favorite drinks from zero-carbon glass bottles.”

This partnership is among many collaborations Encirc has entered with other beverage giants to help reduce emissions.

Last year, the company worked with Molson Coors, the world’s second-largest spirits company by market share, to introduce low-carbon bottles across the UK, which are manufactured using up to 100% recycled or waste glass – called cullet.

The process had previously used 75% recycled or waste content. Production is also powered by renewable energy and sustainable biofuels, which has helped deliver a reduced carbon footprint for each bottle of up to 90%.

The bottle manufacturer has also worked with the likes of Carlsberg to reduce the carbon impact of their bottles.

https://www.foodbusinessafrica.com/diag ... -at-scale/

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DIAGEO TO INCREASE ITS STAKE IN KENYA'S EAST AFRICAN BREWERIES

14 October 2022

(Sharecast News)

Distilling giant Diageo announced on Friday that, through its wholly-owned indirect subsidiary Diageo Kenya Limited, it has served notice on East African Breweries of its intention to increase its equity stake up to 65%.

The company said it would make the move through a partial tender offer made to other shareholders of EABL.

As of Friday morning, Diageo Kenya held 50.03% of the issued share capital of EABL.

EABL is listed on the main investment market segment of the Nairobi Securities Exchange.

"Subject to receipt of the relevant regulatory approvals, details of the proposed partial tender offer will be set out in a tender offer document, which will be made available to shareholders of EABL," Diageo said in its statement.

"Diageo Kenya does not intend to make a takeover offer for EABL and will apply to the Capital Markets Authority in Kenya for an exemption from complying with the requirement to make a takeover offer."

At 1153 BST, shares in Diageo were up 1.67% at 3,675p.

Reporting by Josh White at Sharecast.com.

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Diageo to buy Don Papa Rum for initial €260m

Global drinks giant Diageo said it was buying Don Papa Rum of the Philippines for €260m up front.

Diageo added that it could pay out an extra €177.5m to 2028 subject to performance, "reflecting the brand's current growth potential"

"The super-premium plus segment of the rum category is in the early stages of premiumisation, with a compound annual growth rate (CAGR) of 18% in Europe and 27% in the US between 2016-2021. Through the same period, Don Papa Rum consistently outperformed the market in Europe, delivering a 29% CAGR," the company said on Tuesday.

Launched in 2012 by former Remy Cointreau executive Stephen Carroll, together with Andrew John Garcia, Don Papa Rum is owned by the UK-based Bleeding Heart Rum Company. The spirit is currently available in 30 countries, with France, Germany and Italy being its largest markets.

The acquisition will be funded through existing cash reserves and is expected to close in the first half of 2023.

"While Diageo owns more than 200 brands, it has just one rum... Captain Morgan, so Don Papa will add to its rum portfolio and allow the drinks giant to focus on premiumisation - a major theme for Diageo which aims to focus on quality over quantity to tie in with drink awareness campaigns and to appeal to increasingly health-conscious consumers," said Interactive Investor analyst Victoria Scholar.

"Hand-in-hand with this is the explosion of low and no-alcohol drinks which is the fastest growing segment of the drinks market. Today’s acquisition will add to Diageo’s already extensive and varied brand offering that should help it weather the economic downturn."

Reporting by Frank Prenesti for Sharecast.com

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