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?

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