I put some money on these and it went up few months ago. Pulled the money out and put it elsewhere. Is it worth putting more money on them now?

What's driving this?

Blue Chip Bulletin: Diageo set to acquire Turkish spirits company

http://www.whatinvestment.co.uk/trading/share-dealing/uk-companies/1603538/blue-chip-bulletin-diageo-set-to-acquire-turkish-spirits-company.thtml

The week will be turning pretty boozy towards the end, starting with an interim statement from Diageo on Wednesday. While markets have been erratic and falling, and investors have lurched from one panic to the next, it's just been business as usual at Diageo as profits keep growing and shareholders keep seeing rising dividends. We should expect more of the same

http://moneyam.uk-wire.com/cgi-bin/articles/201110190954494501Q.html?epic=DGE

while the distiller of Smirnoff vodka, Diageo , bubbled up 12p to £13.93. Having been hurt earlier this week by concerns over its prospects in Europe , Diageo was lifted by Investec upping it to “buy” from “hold”.

After the sale of Cadbury to Kraft two years ago, analyst Martin Deboo said that Diageo “represents what is an increasingly scarce asset in UK investing a global leader in branded consumer goods”.

Outlining his reasons for turning bullish, he said the company could capitalise on a fresh round of spirits and brewing industry consolidation by selling off its “trophy asset, Guinness, that we think is both non-core and of high perceived value to alternative owners”.

“The 'Black Stuff’ has held the marketing community, both within Diageo and without, in its mystic thrall for decades,” said Mr Deboo. But he added that Guinness had been struggling in developed markets and that an exit from brewing could enhance Diageo’s value and free up funds for further spirits acquisitions.

http://uk.finance.yahoo.com/news/dealers-acquire-taste-diageo-spirits-180009470.html

LONDON (Reuters) - Diageo Plc(DGE.L), the largest producer of Scotch whisky, is to invest over 1 billion pounds in the drink over the next five years to meet growing demand from the emerging markets of Asia, Latin America and Africa.

Rivals are also expanding, with the world's second-biggest Scotch producer Pernod Ricard (PERP.PA) unveiling a 40 million pound investment last week at its malt distilleries to boost supplies of its top sellers like Ballantine's and Chivas Regal.

Diageo, which makes Johnnie Walker, J&B and Bells whisky and has around a third of the market, said it is seeing strong growth in BRIC markets - Brazil, Russia, India and China - and beyond, as drinkers worldwide acquire a taste for the Scottish tipple.

"We are looking beyond the BRIC countries and while not as large as the BRICs there are huge opportunities in countries like Colombia, Vietnam and Indonesia which are large markets with emerging middle classes," Chief Executive Paul Walsh said on Wednesday.

The British company plans to build a new malt distillery, expand a number of existing ones, develop plans for a second new distillery and a possible third if the 10 percent plus annual sales growth of recent years is sustained for the next three or four.

"If Scotch delivers as forecast, Diageo will enter a new era of above-trend growth," Redburn analyst Chris Pitcher said.

Diageo's Scotch whisky sales have risen 50 percent over the last five years to nearly 3 billion pounds last year, creating a third of group profit. In the last half of 2011 the Scotch market saw volumes grow 8 percent and sales some 14 percent.

SET TO EXPAND

Walsh said three existing sites had been identified for the first new distillery including Inchgower and Glendullan in the Speyside whisky heartland in north east Scotland, and Teaninich slightly further north, while nearly half of its exiting 28 malt distilleries were set to expand.

The new distillery will have the same production of Diageo's Roseilse distillery in Speyside of 10 million litres of alcohol a year, which when it opened in 2010 was the first new malt distillery to open for over 30 years and also the biggest.

If a second distillery is built in two to three years' time, total group malt whisky production will increase by 30-40 percent at the end of the five-year period, Walsh added.

Some 500 million pounds is earmarked for distilling and also to expand its warehousing site and create second site both in central Scotland, while the other 500 million pounds was to cover working capital while the spirit matures.

Diageo said its investment will create 100 new jobs at the group, some 250 construction jobs over the five-year period and generate a further 500 jobs throughout the Scottish economy.

Its shares were up 2.3 percent at 1,552 pence by 1000 GMT, outpacing the FTSE 100 (.FTSE) which was up 1.2 percent.

Nomura upgrades Diageo from neutral to buy, target raised from 1,500p to 1,840p.

http://www.moneyam.com/action/news/showArticle?id=4389007

A nice and steady climb, performed well in July.

Diageo (Other OTC: DGEAF.PK - news) steps up to the bar on Thursday with full-year figures. The market is going for sales of £10.75bn for the spirits distiller and Guinness brewer, and profit before tax of £2.94bn. Investment analysts have pencilled in an earnings per share figure of 92.1p, and a full-year divi of 44.33p.

Charles Stanley is forecasting earnings before interest, tax and amortisation of £3.19bn.

"Asia, Africa and Latin America are expected to have been the drivers of growth, with more subdued performances in North America and Europe (Chicago Options: ^REURUSD - news) . We forecast group sales to be up by 6.5% on an organic basis, driven by a mixture of volume growth and improved mix," revealed Charles Stanley's Sam Hart.

Drinks giant Diageo will release full-year results on Thursday, and what a year it has had -- the shares are up around 50% on 12 months ago, having hit a new 52-week high just a couple of weeks ago, and have more than doubled since early 2009.

Diageo, along with other drinks manufacturers and tobacco companies, is the kind of firm that does well in today's emerging global economy. As more and more wealth reaches the pockets of the billions in China, India and other emerging countries, there is more cash for them to spend on daily luxuries -- and the twin evils of drinking and smoking tend to figure highly.

Diageo's shares are not cheap by usual measures -- they're on a P/E of over 18 based on today's price of 1,687p and on expectations for Thursday's figures. But how far can sales and profits grow? It could be a long way.

Diageo poised to reveal progress in hitting profit targets By MARTIN FLANAGAN
Published on Sunday 19 August 2012 00:00


STRONG emerging markets and greater resilience than ­expected in its core American territory will see spirits giant Diageo this week set a strong pace in meeting ambitious three-year trading targets unveiled a year ago.


Paul Walsh, chief executive of Diageo, Scotland’s largest whisky producer, told the City last August that the group was launching a project to achieve 6 per cent average annual organic net sales growth over three years.

In addition, the group said it was targeting a 200 basis point improvement in profit margins. Analysts expect Diageo to announce significant progress in hitting those targets at its annual results on Thursday,

Gideon Adler, drinks analyst at Investec Securities, said: “In the first nine months of this year Diageo has been running at 7 per cent topline [sales] growth, so therefore look well set to deliver against their targets.

“They have seen strong growth in emerging markets and look well on their way to achieving their other target of 50 per cent of sales from those markets by 2015.”

Under Walsh, the world’s biggest spirits company has been ploughing extra investment into satisfying a growing, aspirational middle class in the likes of Asia and Africa. Premium Scotch whisky brands such as Johnnie Walker have led the way. Adler added: “Meanwhile, Diageo’s US market [accounting for over 40 per cent of its operating profits] has been better than expected. Diageo’s spirits customers in the US are not immune from the economic travails there, but they are still more resilient than the mainstream beer drinker.

“At the high end of the market, consumers continue to trade up into premium Diageo brands like Johnnie Walker Blue Label and Ciroc vodka.”

Deutsche Bank said in a note: “We expect Diageo to be well on track to hit its new mid-term targets and to have delivered another perfect P&L – mid single digit top-line growth, high single digit Ebit [earnings before interest and tax] and double digit earnings per share growth.”

City optimism on the group’s latest performance has also been fuelled by a positive trading update in May and strong recent results from drinks ­rivals such as Beam, Brown Forman and Campari.

The City consensus for annual underlying operating profits at Diageo is £3.2 billion against £2.8bn in the previous year. Consensus for annual organic net sales growth is 6 per cent, against 5 per cent in 2011 when Walsh ratcheted up the key target.

Johnnie Walker whiskey maker Diageo (Other OTC: DGEAF.PK - news) was making gains on reports that it was closing in on a $3bn (£1.9bn) deal to acquire Jose Cuervo tequila. The firm already distributes the tequila brand globally.

Preliminary Results

Results summary

· Growth of: 6% net sales; 4 percentage points of positive price/mix; 9% operating profit and 60 basis points of margin expansion

· Emerging markets which amount to almost 40% of Diageo's business, grew net sales 15% and operating profit 23%

· Acquisitions in faster growing markets, primarily Mey İçki in Turkey, added £320 million of net sales and £82 million of operating profit after transaction and integration costs

· Marketing investment up 8%, up 30 basis points to 15.8% of net sales, focused on strategic brands and the fastest growing markets

· Free cash flow of £1.6 billion

· During the year Diageo increased its ownership stake in Shuijingfang and Halico and announced an agreement to acquire the Ypióca brand in Brazil and the intention to invest a further £1 billion in scotch capacity

· eps pre-exceptional items up 13% to 94.2 pence per share

· Recommended 8% increase in final dividend

Seems very slow to wake up to very good news

..Diageo lifts dividend on Asian, African prospects

Reuters - UK Focus –
.Symbol Price Change
DGE.L 1,698.00 +17.50

......
* Final dividend up 8 pct to 43.5 pence

* Confident of meeting medium-term targets

* FY eps up 13 pct to 94.2 pence vs 92.6 pence forecast

* Talks with Beckmann family on Jose Cuervo brand continue

* Shares up 1 pct

By Sarah Young

LONDON, Aug 23 (Reuters) - The world's biggest spirits group, Diageo Plc, increased its payout to shareholders, confident that buoyant demand for whisky and spirits in Asia and Africa would help it hit medium-term targets.

The Johnnie Walker whisky and Smirnoff vodka maker on Thursday said it was raising its full-year dividend by 8 percent to 43.5 pence ($69) per share, after an increase in sales and profit driven by emerging markets.

Exposure to fast-growing markets in Africa, Asia and Latin America meant Diageo (Other OTC: DGEAF.PK - news) outshone Dutch brewer Heineken NV , which posted a decline in first-half profit on Wednesday, hurt by weak European sales.

"Diageo has delivered on its promises today. The 8 percent increase in dividend reads encouragingly," Investec (Frankfurt: A0J32R - news) analyst Martin Deboo said.

The UK-based company has a dividend yield, a measure of the return investors get on the stock, of 2.9 percent for the 2011/12 financial year, according to Thomson Reuters Starmine.

That's more than the 2.1 percent ratio of arch rival and world No. 2 spirits group Pernod Ricard (Dusseldorf: 508063.DU - news) , which is due to report its annual results on Aug. 30.

As part of its growth strategy, Diageo is believed to be eyeing the acquisition of a minority stake in Mexican tequila maker Jose Cuervo from its owners, the Beckmann family.

"We are continuing discussions with the Beckmann family given the end period for our distribution arrangement," Chief Financial Officer Deirdre Mahlan told reporters on Thursday, refusing to be drawn on the nature of those talks.

The company's long-term distribution deal with Jose Cuervo ends in June 2013. Analysts estimate the world's best-selling tequila brand could be worth around $3.4 billion.

Diageo, which in 2011 set medium-term financial targets for 6 percent annual sales growth, posted an 8 percent rise in reported net sales in the year to the end of June, with an outperformance by emerging markets where sales jumped 15 percent.

Earnings rose 13 percent to 94.2 pence a share, beating a company-compiled consensus forecast of 92.6 pence.


WHISKY THIRST

Diageo, which also sells Captain Morgan rum and Guinness beer, expects half its turnover to come from Asian, African and Latin American markets by 2015 compared with nearly 40 percent in this financial year.

The largest producer of Scotch whisky, Diageo plans to invest over 1 billion pounds ($1.5 billion) in the drink over the next five years to meet growing demand from emerging markets.

A growing taste for spirits in Africa plus demand for Scotch in Latin America and Asia, particularly deluxe brands in South East Asia (KOSDAQ: 900110.KQ - news) and China, boosted Diageo's sales this year, while the company said performance in its established North American and Western European markets improved.

"We're achieving what we set out to achieve in Europe (Chicago Options: ^REURUSD - news) . I wouldn't declare victory, I think it's still going to remain to be a challenging environment," Mahlan said.

"We're really pleased with the U.S. business. We've had a really strong performance from our premium and super-premium brands."

In North America, which accounts for around a third of Diageo's sales, the first two months of the new fiscal year also started well, she added.

European sales were dragged down by declines in Southern Europe, where governments are cutting spending and battling record-high unemployment.

Markets in Spain, Portugal, Italy and Greece now account for just 5 percent of net global sales, after declining in recent years, Diageo said.

Shares in Diageo were up 1 percent to 1,698 pence at 1037 GMT.

..

Shares in top-brand brewer Diageo have frequently been trading at all-time highs. 1,000p in 2006. 1,140p in 2010. 1,400p in 2011. At the end of July this year, the shares breached 1,700p.

This morning, Diageo announced full-year results for 2012. These results again demonstrated the progress of the business that has supported the share price rises.

For 1998, Diageo paid shareholders 10.8p in dividends. This payout has since been increased every year, hitting 43.5p for 2012. In the last seven years, eps has increased from 62.0p to 94.2p. Diageo even managed to grow earnings and dividends through the financial crisis. Further eps growth is expected. The market is looking for an 11.8% rise for 2013.

Diageo reported strong growth in emerging markets. Of some concern, however, will be the 1% decline in sales volumes to European markets.

Some investors might think Diageo is priced for a fall. My belief is that the company's success has earned the shares a 'quality of earnings' premium. Unless Diageo's business suffers a significant decline, I would expect the shares to continue to look 'expensive'.

Diageo (Other OTC: DGEAF.PK - news) has advanced 22% to 1,715p so far during 2012, making the share one of this year's best performers in the FTSE 100 (Euronext: VFTSE.NX - news) (UKX).

The drinks group, which boasts brands such as Guinness, Johnnie Walker and Captain Morgan, has defied the wider economic gloom with a series of positive statements.

During February, Diageo reported half-year results that showed net sales up 7% to £5,757 million and underlying operating profits up 9% to £1,866 million. Progress in emerging markets was a particular highlight, with profits in such regions up 23%. The interim dividend was raised 7% to 16.6p per share.

During May, Diageo issued a trading statement that confirmed total sales had improved 11% during the group's third quarter.

Then in August, Diageo revealed full-year sales had advanced 8% to £10,762 million and operating profits had improved 9% to £3,198 million. The greatest progress occurred in Africa, where sales gained 11%, and Latin America and the Caribbean, where sales increased 19%. The annual dividend was lifted 8% to 43.5p per share, too.

Paul Walsh, Diageo's chief executive, said at the time:

"Diageo is a strong business, getting stronger and the results we released show that very clearly. We have increased our presence in the faster growing markets of the world, through both acquisitions and strong organic growth. We have enhanced our leading brand positions globally, through effective marketing and industry-leading innovation and we have strengthened our routes to market. 6% organic top line growth, 9% operating profit growth and 60 basis points of margin expansion is a strong performance and demonstrates our commitment to delivering efficient growth."

Diageo's first-quarter update will coincide with the group's AGM on October 17, and may provide further positive news

It's time to go shopping for shares again, but where to start? Bombed-out bank RBS (LSE: RBS.L - news) ? Merger maniacs BAE Systems ? Or maybe out-of-favour fashion giant Burberry ?

There are plenty of great stocks to choose from, and I'm enjoying doing some window shopping. So here's the question I'm asking right now. Should I buy Diageo (Other OTC: DGEAF.PK - news) ?

Drink up!

I first bought Diageo in May 2010, but it took me time to acquire a taste for this international spirits and brewing company. Despite serving up a small measure of growth with a modest 3% dividend chaser, I still couldn't get excited about it. Still, I held on, thinking the odd drink can't do you any harm -- and I'm delighted I did. While other FTSE 100 (UKX) stocks have had their weak moments, this well-run company has gone from strength to strength. It is up 50% over the last 12 months, while the FTSE 100 (Euronext: VFTSE.NX - news) has grown less than 20%. I'll drink to that kind of success; the question now is, do I want a top up?

Alcoprofits

Diageo packs quite a punch. It is truly a global company, operating in 180 countries, with a whole barrel of famous brands, including Johnnie Walker, Smirnoff, Baileys, Tanqueray, Captain Morgan and Guinness. That's quite a drinks list.

2012 has gone very smoothly. Diageo posted pre-tax profits £3.12 billion in the 12 months to 30 June, a rise of 32%, with revenue up 10% to £14.6 billion.

That's good news for chief executive Paul Walsh. His performance-linked pay shot up to £11.2 million this year, from a mere £4.4 million last year, but unlike some executives, he is being rewarded for success rather than failure. Diageo is also the first major company to comply with the Coalition's demands for disclosing executive pay.

Thirsty work

European sales may have soured but this has been more than offset by thirsty emerging markets in Asia, Africa and Latin America, which now make up 40% of Diageo's business. Net (Frankfurt: A0Z22E - news) emerging market sales rose 15% and operating profits increased by more than 20%. By 2015, the company expects emerging markets to make up more than 50% of its business.

As I reported yesterday, the Chinese may be thinking twice about splashing out on luxury brands such as Burberry, but in good times or bad, most people will still pay for one of life's little luxuries: alcohol.

This cash-rich company is also investing in its future. It is investing more than £1 billion in the Scotch whisky renaissance, while Johnnie Walker is going down a treat in the US, where Diageo is nicely placed to benefit from a QE3-fuelled recovery. Europe (Chicago Options: ^REURUSD - news) , where it still generates roughly one-third of its profits, is more of a worry.

A pricey round

It isn't all fun, fun, fun. The rising cost of raw materials, such as wheat and barley, could prove a downer, as could further gloom in Europe. The company also has significant foreign exchange exposure, a worry in this turbulent time for currencies.

My biggest concern is that Diageo is getting expensive. It now trades on a price-to-earnings ratio of 17.4 times earnings. Despite its progressive dividend policy, which included an 8% hike this year, the surging share price means that you are buying a modest yield of 2.6% (covered 2.2 times).

I'm delighted I ordered a slug of Diageo in 2010. But at these prices, I'm in no hurry to order another round.

Strong buying, with a good rise

Diageo in advanced talks to acquire stake in Indian concern
Fri 21 Sep 2012

DGE - Diageo

Latest Prices
Name Price %
Diageo 1,717.00p -0.17%


LONDON (SHARECAST) - The world´s largest alcoholics drinks maker, Diageo (Market Cap: 43bn pounds), is in advanced talks to buy a stake in Indian outfit United Spirits (Market Cap: 1.48bn pounds), four people with knowledge of the matter have told Bloomberg.

Such a transaction would fit in well with Diageo´s strategy of increasing its portfolio of emerging market assets; in fact, the company already has operations in the South Asian country.

Diageo tried to acquire a stake in United Spirits back in 2009 but failed after it was told that its offer was not at fair value.

So, what may have changed this time around? According to the news agency one of United Spirits´ main shareholders, Vijay Mallya, needs to plug a large financing gap –of approximately 370m pounds- in another one of his holdings, airline Kingfisher.

Significantly, as part of the deal, which is yet to be finalized, Diageo may get the right to appoint a majority of United Spirits’s board members, including the chairman, one person said.

The two companies may announce a deal by next month, said one of the people.

United Spirits shares have doubled this year, and yet profit in the three months ended June 30 rose by just 5.3% while sales did so by 6.3%. Over at Diageo meanwhile sales grew 24% in the country in the year through June 30, the company said, driven by “strong momentum across the scotch portfolio.”

A spokesman for United Spirits has denied the speculation.

As of 15:09 shares of Diageo are falling by 0.7% to the 1708p mark.

Would Warren Buffett Buy Diageo?


http://uk.finance.yahoo.com/news/warren-buffett-buy-diageo-142208512.html

25 September 2012



Joint statement from Diageo plc and United Spirits Limited



Today Diageo plc and United Spirits Limited have issued the following joint statement:



United Spirits Limited and Diageo plc confirm that Diageo plc is in discussion with United Spirits Limited and United Breweries (Holdings) Limited in respect of possible transactions for Diageo plc to acquire an interest in United Spirits Limited. However there is no certainty that these discussions will lead to a transaction.

Good buying on the news today

British booze giant, Diageo (Other OTC: DGEAF.PK - news) , also rose after it confirmed it is in talks to invest in Indian outfit United Spirits. Helping thing along perhaps, analysts at Nomura today reiterated their buy recommendation on the company´s shares (and 2000p target) saying that: "Last year's investor event in Shanghai set out a strategy of investing for growth in Asia, which looks to be on track. We believe that continuing high double-digit EBIT growth in this region will help the group to increase organic EBIT overall at least as fast as last year (we estimate 9% in FY 13). In addition, we continue to see scope for value creation through M&A in spirits."

Spirits giant Diageo confirmed this week that it is in talks with India’s United Spirits regarding the UK-listed company potentially buying a stake in the group. A deal probably wouldn’t be cheap – but it makes complete strategic sense for Diageo. Most Indians drink locally brewed products, because import tariffs on alcohol are spectacularly high, being in excess of 150%. However, hopes are mounting that an EU-India free trade agreement can be signed soon – although talks on this matter have dragged on for four years amid disagreements on certain tariffs and visa issues. It is in the interests of both parties to get a trade deal signed as soon as possible.

The purchase would give Diageo a strong foothold into the Indian market, which has a complex, regulated distribution structure with inter-state taxes and acts as a strong barrier to entry. Diageo is significantly more profitable than United Spirits. Credit Suisse has calculated that United Spirits sells close to 120m cases of alcohol each year compared with Diageo’s 157m, but earnings before interest, tax and amortisation (EBITA) equal to just 4% of Diageo’s. This implies Diageo would have plenty of scope to help boost profitability at the Indian group. The shares are trading on a June 2013 earnings multiple of 16.7 falling to 15 and yielding 2.8%. Questor last recommended a buy on June 7 when Diageo shares were at £15.81. They are up 10% from then and remain a buy, The Telegraph reports.

These going to £20 before christmas will be a nice present.

At times like these, who doesn't need a drink? Spirits maker and brewer Diageo knows the answer to that question, because its stocks have gone down a treat in the recession. It operates in more than 180 countries worldwide, and that means an awful lot of thirsty customers. When I recently tried to get the measure of Diageo, I discovered its share price had already risen 50% over 12 months (great news for me, I hold it). It has since fizzed another 5%. Plenty of people want a taste of its recent success, but I'm saying no to a top-up. On a forecast P/E of 17.1 for June 2013, there must be better value prospects out there. I won't buy, but I am most definitely holding.

Wednesday preview: Diageo, MPC minutes
Tue 16 Oct 2012

DGE - Diageo

Latest Prices
Name Price %
Diageo 1,781.50p +0.54%


LONDON (SHARECAST) - Drinks brands leviathan Diageo will be going up against tough comparative figures from a year ago when it unveils fiscal first-quarter figures on Wednesday.

Nomura thinks the Guinness brewer will still manage to churn out organic revenue growth of 5%. with strong growth in emerging markets and resilience in the US more than offsetting the slow-down in Europe.

"We do not expect any change to the company‘s medium-term guidance (6% revenue growth, 200bp [two percentage points] on margin over three years)," the Japanese broker revealed.

Q1 Interim Management Statement
RNS
RNS Number : 8825O
Diageo PLC
17 October 2012



17 October 2012



Interim Management Statement for the three months ended 30 September 2012



Diageo reports 5% organic net sales growth in Q1



In the quarter ended 30 September 2012 Diageo delivered organic net sales growth of 5% against the comparable period when Diageo reported 9% organic net sales growth. Volume was up 2%. Organic net sales growth by region was:

• North America 6%

• Europe (1)%

• Africa 11%

• Latin America and Caribbean 16%

• Asia Pacific 2%



On a reported basis, net sales grew 6% in the quarter, against the comparable period. Net sales from acquisitions, Mey İçki, Meta Abo, Ypióca and Shuijingfang, were £79 million and there was a negative foreign exchange impact of £49 million.



Continued good performance in US spirits was the main driver of the performance in North America. In Europe, Turkey, Russia and Eastern Europe each continued to perform strongly and delivered double digit net sales growth. Western Europe was weak against a strong quarter in the prior year. Southern Europe and Ireland continued to be impacted by the economic situation in those markets while in France consumer demand remains weak following the duty increases implemented in January. Africa also delivered another double digit net sales growth performance as strong growth in spirits in South Africa and in beer in East Africa offset weakness in Nigeria. Latin America and Caribbean again delivered strong net sales growth despite a tough comparison in the prior year. In Asia Pacific performance in the developed markets was impacted by continued weakness in South Korea. In the emerging markets of Asia strong growth in South East Asia and China, especially in scotch, was offset by the postponement into the second quarter of sales to Global Travel customers and weakness in the vodka category in India.



Net assets were £7,216 million at 30 September 2012, compared with £6,811 million at 30 June 2012 primarily as a result of net profit for the period. Net borrowings were £8,019 million at 30 September 2012 having been £7,570 million at 30 June 2012. The purchase of Ypióca was completed and the consideration of £284 million was paid in August.



Paul Walsh, Chief Executive of Diageo commented:



'Diageo has delivered a solid start to the new financial year with net sales growth in line with expectations. The strength of our brands and our routes to market, coupled with the investments we have made in faster growing markets continue to drive the performance of our business. Growth in North America reflects our strength in US spirits and while the consumer environment in Western Europe remained challenging we delivered over 30% net sales growth in the faster growing markets of Europe, especially in Turkey where we have driven share gains from the successful integration of Mey İçki. The developed markets of Asia Pacific, especially Korea, are challenging but in the developing markets of Asia we have seen continued good performance. This performance together with the strong results we delivered in Africa and Latin America, and in the emerging markets of Europe has resulted in another period of double digit growth in our emerging markets business.



As a global business we continue to be aware of the uneven nature of the global economy. However we remain confident that we will deliver our medium term goals, given the strength of our brands and our routes to market.'

ENDS

..Why Diageo Is Up 23% This Year

By Jon Wallis | Fool.co.uk – 5 hours ago
Diageo (Xetra: 851247 - news) (NYSE: DEO.US) has advanced about 23% to 1,766p so far during 2012, making the share one of this year's best performers in the FTSE 100 (FTSE Index: EO100.FGI - news) (UKX).

The company -- one of the world's leading premium drinks businesses whose brands include Johnnie Walker, Baileys and Guinness -- seems to have impressed investors with a series of positive statements.

During May, the group issued an interim management statement that revealed organic net sales were still growing strongly, having risen 7% in the nine months to 31 March 2012, with sales volumes up 3%.

The best performance came from Diageo's Latin America and Caribbean operations, which saw organic net sales surge 18%. Elsewhere, sales cooled off in North America, and grew just 5%, while a 1% sales dip was reported in Europe (Chicago Options: ^REURUSD - news) .

In September, Diageo issued its financial report for the year to 30 June 2012. Group sales rose 10% to £14,594 million while operating profits soared 22% to £3,158 million. The total dividend for the year was increased by a healthy 7.7% to 43.5p per share.

And just last week, Diageo released a statement for the three months ended 30 September 2012. Organic net sales growth slowed slightly to 5%, but the Latin America and Caribbean regions still saw growth of 16%, while North America improved to 6%. Although Europe as a whole saw another 1% decline, there was double-digit growth in Russia, Eastern Europe and Turkey.

Paul Walsh, Diageo's chief executive, commented last week:

"Diageo has delivered a solid start to the new financial year with net sales growth in line with expectations. The strength of our brands and our routes to market, coupled with the investments we have made in faster growing markets continue to drive the performance of our business."

"As a global business we continue to be aware of the uneven nature of the global economy. However we remain confident that we will deliver our medium term goals, given the strength of our brands and our routes to market."

Diageo's half-year results will be published during February, and may reveal further encouraging news that will impress investors.

United Spirits chief Mallya not sure of Diageo deal
Reuters – 1 hour 12 minutes ago.. .
GREATER NOIDA, India (Reuters) - Liquor baron Vijay Mallya does not know whether a deal for UK drinks giant Diageo Plc (LSE:DGE.L - News) to take a stake in his United Spirits Ltd (NSI:MCDOWELL-N) will be struck or not, he said on Saturday.

Mallya has been scrambling to raise funds for his ailing Kingfisher Airlines Ltd (NSI:KFA.NS - News), and has been in talks with the maker of Johnnie Walker whisky and Smirnoff vodka to sell a stake in United Spirits.

"Whenever we need to say something we will, we keep discussing but we don't know whether a deal will happen or not," Mallya told Reuters on the sidelines of the Indian Grand Prix, which he flew in from London to attend.

(Reporting by Alan Baldwin; Editing by Daniel Magnowski

pressing £18 :-))

.
Diageo set to buy stake in Mallya's United Spirits: report
AFP – 1 hour 34 minutes ago.. .
.

The world's largest spirits maker Diageo (Xetra: 851247 - news) has reached a deal with Indian liquor baron Vijay Mallya's UB Group to buy a stake in United Spirits, the Press Trust of India news agency reported late Thursday.

The agreement could be announced Friday, the Indian news agency quoted unnamed sources as saying, while Indian television channels reported Mallya flew to London on Wednesday, accompanied by UB executives, to discuss a deal.

Britain's Diageo Plc has been engaged in talks to acquire a stake in United Spirits to gain a stronger presence in India's lucrative spirits market where it trails global rival Pernod Ricard (Dusseldorf: 508063.DU - news) of France.

The Press Trust of India said no other details were available about the deal but earlier this week India's Mint business daily said Diageo was set to pick up a 51 percent stake in United Spirits in a transaction worth around $2 billion.

The transaction would involve the direct purchase of a portion of Mallya's holding, the issue of fresh shares and an open offer to buy stock from public shareholders, Mint said.

A UB Group spokesman declined to comment on the Press Trust of India report while no response was immediately available from Diageo, whose previous talks with Mallya to acquire a stake in United Spirits fell apart in 2009.

In September, Diageo -- makers of Johnnie Walker whisky -- announced it was in discussions with United Spirits and parent United Breweries (BSE: UNIBW.BO - news) to possibly "acquire an interest in United Spirits".

Mint newspaper had said it was unclear what stake Mallya would have in United Spirits if the deal went through.

The money from the sale could allow Mallya to reduce United Spirits' hefty debt and inject funds into his cash-strapped Kingfisher Airlines.

Last month, India's aviation regulator suspended the flying licence of the debt-laden airline, citing safety concerns. The airline has not flown since October 1 following a pay dispute with workers.

Mallya has said he will present a "comprehensive" plan to the government to revive the carrier, whose licence expires December 31.

United Spirits, whose shares have surged on expectations of a deal with Diageo, is the flagship company of Bangalore-based UB Group and sells such brands as Bagpiper and Royal Challenge in India.

Mallya would remain chairman of United Spirits but Diageo would take control of managing the company, Indian media reports said.

Diageo buys big stake in USL
Fri 09 Nov 2012

DGE - Diageo

Latest Prices
Name Price %
Diageo 1,803.00p +0.78%

FTSE 100 5,770 -0.11%
FTSE 350 3,079 -0.16%
FTSE All-Share 3,015 -0.16%
FTSEurofirst 300 1,097 -0.11%
Beverages 12,840 +0.63%

LONDON (SHARECAST) - Drinks behemoth Diageo is to spend over one billion pounds taking a majority stake in Indian spirits firm USL.

The firm will initially pay 660 million pounds for a 27.4% stake in USL, the biggest spirits company in India.

This deal will trigger an obligation on Diageo to launch a mandatory tender offer to the public shareholders of USL.

Consequently Diageo has also announced that it will launch a tender offer to acquire a maximum of 37,785,214 shares, which equates to 26% of USL's shares.

When the deal is complete Diageo will hold 53.4% of USL at an aggregate cost of around £1.29bn.

Paul S Walsh, Chief Executive of Diageo, said growth in the Indian market was being driven by the increasing number of middle class consumers looking to buy premium and prestige local spirits brands as income levels rise.

"The combination of USL's strong business with the capabilities which Diageo brings as the world's leading premium drinks company will ensure that USL continues to lead the industry in India," he said.

Diageo: Nomura raises target from 2,000p to 2,100p, buy rating kept

Broker snap: Diageo's USL deal comes at the right time, says Nomura
Mon 12 Nov 2012


LONDON (SHARECAST) - Nomura has raised its target price for beverages giant Diageo from 2,000p to 2,100p and retained its 'buy' recommendation for the stock, following last week's deal to buy a stake in Indian spirits group United Spirits Limited (USL).

Diageo said on Friday that it is to acquire a 27.4% stake in USL for around £660m and announced a tender offer to buy an additional 26% stake (53.4% interest in total), which now means that the company generates 45% of revenues from emerging markets, "well on the way to the target of 50% by 2015", Nomura said.

The broker said: "Announcement of this deal ahead of Diwali next week means that the celebrations can really begin, with the company gaining control whilst retaining a significant local minority interest."

Nomura said that the deal represents a "very significant medium-term upside potential in India" for Diageo. USL's volumes last year matched Diageo's (121m cases of spirits), but the cost to buy the majority stake (£1.3bn) is a fraction of Diageo's enterprise value at over £50bn.

"We see very significant opportunity to add value through premiumising local spirit and leveraging the distribution platform for international spirits, especially Scotch whisky."

Meanwhile, Nomura said that a "likely" reduction in import tariffs on scotch could add over $400m to the profile pool for scotch in India (versus the current estimate of $40m) "with the company in a good position to capture the lion's share".

Shares were up 0.41% at 1,810p in mid-morning trade on Monday.

:-))

Why sell,Dreamy? Do you know something we don't? I've held since March 2006 and can't see any reason to get rid at the moment. More than doubled with re-invested divis.

Dont worry its not going to crash.

Let me know your next new lead then, please.

Lol

We know that Santa loves a tipple. We leave a sherry out for him every year and he never knocks it back.

One of the FTSE 100's most successful companies in recent years has been Diageo. In the last five years, the shares are up 73.2%. In that time, dividends have been increased, on average, 5.9% per annum. This has been surpassed by average annual EPS growth of 14.0%.

The good news doesn't end there. For the current financial year, Diageo is expected to report earnings growth of 10.7%. This is forecast to be followed by an 11.7% increase the year after. Similar progress in the dividend is also expected.

This puts the shares on a 2014 price-to-earnings (P/E) ratio of 15.9 times earnings. The expected yield for 2014 is 2.9%.

Interim Results

Results summary

· 5% organic net sales growth with 1% organic volume growth

· 70 basis points of organic gross margin improvement

· 5% organic growth in marketing focused on the faster growing markets

· 110 basis points of organic operating margin expansion

· 9% organic operating profit growth

· Faster growing markets are 42% of Diageo's net sales in the half and delivered organic net sales growth of 14% and operating profit growth of 21%

· Acquisitions made in the past two years added £0.3 billion to net sales in the half

· Free cash flow improved more than £100 million to £0.7 billion

· eps pre-exceptional items up 9% to 60.9 pence per share

· 9% increase in interim dividend

Preliminary Results


Results show Diageo is a strong business getting stronger


· Net sales growth of 5%, driven by 4 percentage points of positive price/mix

· Operating profit growth of 8%, driven by 0.8 percentage points of margin expansion

· Marketing investment up 5%, to 15.7% of net sales, focused on the strategic brands

· Strong performance in North America with net sales up 5% and operating profit up 9%

· Emerging markets' net sales are 42% of Diageo's business, following 11% net sales growth and acquisitions which added £233 million

· Emerging markets operating profit up 18%, as increased scale led to operating margin expansion

· Acquisition of the Ypióca brand in Brazil in August 2012

· Free cash flow was £1.5 billion, after making a £400 million contribution to the UK pension scheme

· Growth of 11% in eps pre-exceptional items, to 104.4 pence per share

· Board recommending a 9% increase in the final dividend

· Increased stake in Shuijingfang and acquired the major interest in USL since the year end

If your looking in Buzzing could you put the chart in the header please?

Diageo: Bank of America raises target from 2250p to 2450p and keeps its buy recommendation

Diageo: Citi increases target from 1830p to 2320p upgrading from neutral to buy.

Oversold?



Trading statement on 17th October.

JP Morgan Cazenove Overweight 0.00 2,200.00 2,050.00 Reiterates

Nomura Buy 0.00 2,350.00 2,300.00 Retains

Bank of America Merrill Lynch Buy 0.00 2,450.00 2,450.00 Reiterates

Just gone long @1898p

Closed half +25p

Berenberg Buy 0.00 1,921.00 2,250.00 2,250.00 Retains

Exane BNP Paribas Outperform 1,946.00 1,921.00 2,033.00 - Upgrades

Just closed the rest for +70p

Bought in again this morning.

Barclays Capital Overweight 0.00 2,250.00 2,250.00 Reiterates

Interim Management Statement

Diageo reports 3% organic net sales growth for the three months ended 30 September 2013

In the three months ended 30 September 2013 Diageo delivered 3.1% organic net sales growth with volume up 0.6%. Reported net sales were flat for the quarter mainly reflecting the termination of the distribution agreement for Jose Cuervo.

By region, organic net sales growth for the three month period was:
· North America 5.1%
· Western Europe (1.1)%
· Africa, Eastern Europe and Turkey 1.3%
· Latin America and Caribbean 10.9%
· Asia Pacific 0.6%

Credit Suisse Outperform 1,943.50 1,938.00 2,350.00 2,350.00 Retains

Investec Sell 1,943.50 1,938.00 1,865.00 1,865.00 Reiterates

Numis Add 1,943.50 1,938.00 2,200.00 2,200.00 Reiterates

Barclays Capital Overweight 1,978.75 1,954.00 2,250.00 2,200.00 Reiterates

Interim Results

The strength of a diverse portfolio in a tougher environment


· Net sales grew 1.8% in the first half, following growth of 2.2% in Q1*

- North America up 4.6%

- Western Europe down 1.0%, continuing the improving trend seen in Q1

- Emerging markets up 1.3%, impacted by weakness in baijiu in China and in Nigeria

· Continued strong price/mix in both developed and emerging markets at 4ppts

· Marketing investment up 2.7%, ahead of net sales growth, to 15.6% of net sales

· Super and ultra premium brands grew strongly, with reserve brands up 18.5%

· Beer was the only category to decline, down 2.6%, with weakness in Nigeria and Ireland

· Operating profit grew 2.9% with 0.4ppts of operating margin improvement

· Free cash flow was £326 million

· eps pre-exceptional items 62.6 pence per share, up 4%

· Interim dividend increased 9%

· Detailed plans to be developed to de-layer the organisation and deliver further operating efficiencies

· Savings of £200 million a year by year ending 30 June 2017 will fund future change programmes, investment in growth and improved margin

· Restructuring costs, expected to be taken as an exceptional charge, will be between £200 million and £250 million

*Q1 organic growth restated to $1 = VEF19 (Venezuelan Bolivars). See explanatory note 2 on organic movements.

Small long @1816.

Canaccord Genuity Hold 1,833.00 1,900.00 1,835.00 Reiterates

Numis Add 1,833.00 2,200.00 2,200.00 Reiterates

Liberum Capital Hold 1,833.00 - - Reiterates

Interim Management Statement

Is anyone else having trouble trading this stock this morning? Tried
to sell on both my accounts and I can't get a quote? Unusual.

I've just tried a dummy sell and got quoted.

Thanks skinny. I wonder what the problem my end was?
They have finally come back but 6p
lower than original quote. Shall hang on a bit longer.

Shares in Diageo and SABMiller were also on the up today after it was rumoured that the companies could combine, creating a drinks group worth over £100bn at current market prices. It is thought that Peroni and Grolsch maker SABMiller, the larger of two with a market capitalisation of around £54bn, could be eyeing a possible merger with Smirnoff and Baileys manufacturer Diageo in an attempt to ward off an approach from drinks giant AB Inbev, which has been rumoured as a potential bidder in recent weeks

Preliminary results

Created a stronger business in a tougher environment


· Net sales, up 0.4%, reflecting mixed performance; growth in North America, stability in Western Europe and weakness in emerging market economies

· Fourth quarter net sales up 0.8%

· Positive consumer trends in higher priced categories, Diageo's reserve brands net sales were up 14% and targeted price increases drove 3ppt of positive price/mix

· Operating margin improved 0.8ppt

· Procurement driven savings, worth 4% of total marketing spend, more than offset the cost of increased activity, contributing 0.2ppt of the total margin improvement

· Eps before exceptionals was down 7.6p to 95.5 pence per share as foreign exchange movements reduced eps by 10 pence per share

· Free cash flow was £1,235 million

· Recommended final dividend of 32.0 pence per share, up 9%

IMS for the three months ended 30 September 2014

Interim Results

A strong business improving in a challenging environment

· Organic net sales in the half were broadly flat (-0.1%) with volume down 1.9%. Performance improved in Q2

· Continued strong performance of reserve brands, up 10%, was a key driver of positive overall price/mix

· Marketing spend was in line with net sales, as effective spend benefitted from procurement efficiencies worth 3% of total marketing investment

· Restructuring benefits drove operating margin improvement of 28bps with organic operating profit up 0.7%

· Free cash flow was £699 million, up £373 million on the first half last year

· Eps before exceptional items was 53.7 pence per share, down 8.9 pence per share driven by negative exchange impacts and lower income from associates and joint ventures

· Interim dividend up 9% to 21.5 pence per share

Credit Suisse note:
" There has been widespread speculation in the media this weekend that 3G may be in the early stages of considering a bid for Diageo, following an initial article by well-followed Veja columnist Lauro Jardim last week. Diageo ADRs were up 9% late Friday.
 Diageo is very exposed, confidence in management is low meaning, in our opinion, any bid would be well received by investors.
 Assuming an offer at a c30% share price premium, and gearing up to similar net debt/EBITDA ratio as Heinz was (8-9x), we estimate 3G would require -£40bn of equity to fund the transaction pre asset disposals, which could involve the beer business (£10bn) to ABI, wine (£1bn) and the 34% stake in Moet Hennessy (£3.5bn). So that's £25bn of equity post disposals.
 For 3G, aside from cost savings, the prize could be a higher multiple on the largest international spirits business in the world - note best in class pure play spirits companies such as Brown Forman trade on 26x FY16E P/E multiples v Diageo trading on 18x. And, ABI (23% owned by 3G founders) would be a likely front runner to buy Diageo's beer business, a HSD EPS accretive deal post synergies. As an aside, in our view, further reducing the scope for an ABI/SAB combination, leading to de-rating in SAB's premium.
 What is Diageo's defense? Replicate 3G's strategy, instil a zero based budgeting savings program, dispose of non spirits assets.
 Conclusion for investors. Despite poor fundamentals, Diageo moves into the special situ camp. We raise our rating to Neutral (from Underperform)."

bloody glad i got out of these the other day, purely to reduce exposure to the markets

Up at resıstance level agaın. Break out hopefully.

Good couple of days.

Is there anymore to come is the question now!!!

Had a good run wıth thıs one.

HSBC note today:
The long-hoped for cultural change looks to have arrived and we turn bullish after an extended period of caution Management appears to be executing better than at any time in recent memory, easing our concerns about the future.
Upgrade to Buy from Hold, raise target price c11% to 2,600p
More than just a post-Brexit vote rally: Diageo historically has been known as a company that has struggled to meet expectations. Our valuation and rating of the stock has typically priced in some scepticism, leading us to be more bearish than many.
However, after a year of extended conversations with managers across the company, we think Diageo's often criticised corporate culture is finally evolving in the direction long hoped for by the market. This gives us optimism that management is executing more efficiently than at any time in recent memory; we are, in effect, giving the benefit of the doubt to a management team that is affecting change in a meaningful and constructive way.
Thus we are upgrading Diageo shares to Buy from Hold for two reasons.
First, operationally we believe Diageo is: (i) focused on meaningful cost control, (2) benefitting from a booming and well-resourced Reserve portfolio push and (3) stoking solid local growth stories. All of these we believe will continue to drive the stock from here post the Brexit vote rally.
Second, due to Diageo's high operational exposure to the US and the Eurozone, the recent update to HSBC's global cost of equity estimates has an immediate positive impact on our DCF valuation. We lower our WACC by 30bps to 6.3% from 6.6%, resulting in a new target price of 2,600p, an increase of c11% from 2,350p previously.
Trading at a P/E of 21.1x versus our calendar 2017e EPS of 103.62p, the stock remains at a 5% discount to the group average of 22.5x, making it an attractive option versus expensive peers."

Preliminary results http://www.moneyam.com/action/news/showArticle?id=5603194

Diageo issued an update on its trading on Wednesday morning, claiming its business continued to strengthen through improved marketing, innovation and commercial execution, as investors prepared for the company's annual general meeting. The FTSE 100 distilling giant said it remained "well set up" to deliver in line with its own expectations. "We expect the H1 organic net sales growth rate will be impacted by the later timing of Chinese New Year and by the expected impact of the highway ban in India," chief executive Ivan Menezes noted.

Excuses are getting really stretched now. "Expected impact of the Highway ban in India"

Plus the temporary Traffic lights at the top of Bird Hall Lane.

Trading update: http://www.moneyam.com/action/news/showArticle?id=6134788

Diageo on Monday said it was selling 19 brands, including Seagrams, to US firm Sazerac for $550m (£427m). The net proceeds of around £340m, after tax and transaction costs, will be returned to shareholders through a share repurchase.

Interims https://www.moneyam.com/action/news/showArticle?id=6295843