Diageo delivered an operating profit and organic top-line growth above the medium-term guidance of the company. Despite the challenging economic environment, organic net sales grew. Net sales were up across all regions. As the company implemented strategic price increases, volume grew. The free cash flow generated shows continued investment in long-term growth. The Super Premium Plus brands of Diageo grew organic net sales. Also, there was strong growth in Guinness, tequila, and scotch. Organic net sales grew in North America. Spirits net sales also grew with strong double-digit growth. As expected by the management, growth in the U.S. spirits category is normalizing. The market continues to be premium and consumer demand remains resilient. We give Diageo PLC a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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