This is our first report on global alcoholic beverage major, Diageo. The company has had a relatively rough patch over the past few quarters and has failed to meet analyst expectations as a result of strong headwinds, supply chain problems, and geopolitical issues. The past quarterly result was decent as its sales increased by 21%, and every region saw double-digit growth. Volume increased by 10%, while price/mix growth increased by 11 points, with pricing contributing to the balanced growth of the mid-single digits. The growth of their market share is ongoing. Most of their markets saw them increase their held off-trade share. Besides, the company’s Super Premium Plus brands rose by 31%, and it has an advantageous portfolio that actively moulds toward quickly expanding segments. The management kept up their investment in A&P, which increased by 25%. Overall, they are well positioned for the spirits category’s sustained premiumization and market share increases within the overall beverage alcohol market. We initiate coverage on the stock of Diageo with a ‘Hold’ rating.
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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