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?

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