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?

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