Core Insights - Diageo plc reported a decline in pre-exceptional earnings per share by 9.6% year over year to 97.7 cents, attributed to lower contributions from Moët Hennessy and unfavorable currency rates [1] - The company experienced a slight decline in net sales of $10.9 billion, down 0.6% year over year, despite a 1% increase in organic net sales, marking a return to organic sales growth [2][4] Financial Performance - Organic net sales growth was driven by gains in four out of five regions, with North America showing a 0.2% increase, Europe 0.7%, Africa 8.9%, and Latin America and the Caribbean (LAC) 5%, while Asia Pacific saw a decline of 2.6% [4] - Reported operating profit decreased by 4.9% year over year, influenced by lower organic operating profit and negative currency impacts, with the operating margin contracting by 132 basis points [5] - Organic operating profit fell by 1.2% year over year, with the organic operating margin contracting by 69 basis points due to increased overhead investments, offset by lower marketing spending and positive gross margin expansion [6] Cash Flow and Capital Allocation - Diageo generated net cash from operating activities of $2.3 billion and reported a strong free cash flow of $1.7 billion, reflecting disciplined working capital management [9] - The company maintained its interim dividend at 40.50 cents per share, indicating strong liquidity and confidence in long-term business health [9] Future Outlook - For fiscal 2025, Diageo expects capital expenditure to be between $1.3 billion and $1.5 billion [10] - The company anticipates improved organic net sales growth in the second half of fiscal 2024, although tariffs may impact this momentum, and expects organic operating income to decline slightly in the second half [11]

Diageo plc (NYSE:DEO) F25 Interim Results Q&A Conference Call February 4, 2025 4:30 AM ET Company Participants Sonya Ghobrial - Global Head of Investor Relations Debra Crew - Chief Executive Officer Nik Jhangiani - Chief Financial Officer Conference Call Participants Simon Hales - Citi Sanjeet Aujla - UBS Andrea Pistacchi - Bank of America Mitch Collett - Deutsche Bank Gen Cross - BNP Paribas Edward Mundy - Jefferies Celine Pannuti - JPMorgan James Edward Jones - RBC Operator Good morning and welcome to Dia ...

The spirits market is experiencing one of the darkest times in its recent history, and the price per share of the major companies in this industry is plummeting precipitously. Diageo plc (NYSE: DEO ) still does not seeHi there, welcome to my profile. My name is Eugenio Catone, I live in Italy and I am 26 years old. In 2023 I graduated in Business Administration and I am completing my studies. My interest in financial markets started about 5 years ago when I accidentally came across a video about trading. Th ...

DIAGEO Interim Results Fiscal 25 Debra Crew, CEO & Nik Jhangiani, CFO 4 February 2025 Cautionary statements concerning forward-lookinq statements and non-GAAP financial measures The fibewing gnesentation contains, Yoward-Kooking's catements can be identified by the foct that they do not relebe only to historical or current tracks and may careerdy. of words such as "will", "anticipates", "atrould", "would", "would", "traqest", "dim", "noy", "expect", "intends" or simillar expressions ar sotements include it ...

Spirits maker Diageo said Tuesday that it is taking measures to deal with the potential impact of U.S. tariffs and has removed its medium-term guidance due to macroeconomic and geopolitical uncertainty."We are taking a number of actions to mitigate the impact and disruption to our business that tariffs may cause, and we will also continue to engage with the U.S. administration on the broader impact that this will have on everyone supporting the U.S. hospitality industry, including consumers, employees, dist ...

Diageo Plc (DEO) is scheduled to release interim results for the first half of fiscal 2025 on Feb. 4. The company has been witnessing difficulties in the Latin America and Caribbean (LAC), and North America regions, which negatively impacted the company’s results in fiscal 2024.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.However, DEO is experiencing solid business momentum, strong consumer demand and market share gains, which have been boosting its performance. DEO is anticipate ...

Core Insights - Diageo PLC is investing $415 million in a new 360,000-square-foot manufacturing and warehousing facility in Montgomery, AL, aimed at enhancing supply chain resilience and driving long-term growth [1][2][4] Investment and Job Creation - The investment is expected to generate 750 construction jobs and approximately 100 permanent jobs once operations begin, with the facility scheduled to be fully operational in the second half of 2025 [2][6] Production Capacity and Market Impact - The new facility will have a multi-million case annual production capacity, which is anticipated to boost Diageo's production capacity, potentially leading to increased market share and revenue growth [2][3] Strategic Location and Sustainability - The facility, named 'Diageo Montgomery,' will serve as a strategic operations hub, reducing road travel and lowering carbon emissions from logistics operations, while also incorporating state-of-the-art technology for water and energy efficiency [4][5] Economic Development and Community Impact - The project is expected to contribute to the economic development of Montgomery and strengthen Alabama's reputation as a prime location for global investment, creating high-quality jobs and reinforcing community support [5][6] Long-term Growth Strategy - Diageo aims to increase its value share in the beverage alcohol sector by 50% by 2030, targeting organic sales growth of 5-7% and organic operating profit growth in line with net sales growth for fiscal 2023-2025 [7][8] Challenges in Key Markets - Despite the positive developments, Diageo has faced challenges in the Latin America and Caribbean (LAC) and North America regions, negatively impacting financial results in fiscal 2024 due to shifting consumer sentiment and elevated inventory levels [9]

Core Viewpoint - Diageo has denied media reports regarding the potential sale of Guinness and its stake in Moët Hennessy, stating it has "no intention to sell either" [1][3]. Group 1 - Diageo responded to recent media speculation about reviewing its portfolio, specifically mentioning Guinness and Moët Hennessy [1][3]. - The company plans to update the market with interim results on 4 February 2025 and will host an investor and analyst day focused on Guinness on 19/20 May 2025 [2].

Strategic Moves and Portfolio Optimization - Diageo has completed the sale of its Cacique rum brand to Bardinet S A, a leading player in the Spanish spirits market, as part of its strategy to optimize its portfolio and focus on premium brands [1][2] - The sale aligns with Diageo's commitment to effective portfolio management, with Bardinet expected to preserve Cacique's authenticity and market positions in Spain and Venezuela while expanding its presence in Continental Europe [3] - Bardinet's CEO highlighted that the acquisition will bolster Bardinet's rum market share in Spain and enhance its offerings while maintaining Cacique's exceptional taste and quality [4] Financial Performance and Market Reaction - Diageo's shares opened the pre-market trading session with an increase of 1 8% following the news of the Cacique sale [5] - The company is confident about the long-term growth potential of the total beverage alcohol sector, targeting a 50% expansion in its value share to 6% by 2030 [6] - Diageo is on track to deliver medium-term guidance for fiscal 2023-2025, targeting organic sales growth of 5-7% and organic operating profit growth broadly in line with net sales growth [6] Productivity and Cost Management - Diageo is progressing with its new productivity commitment to deliver $2 billion of productivity savings from fiscal 2025 to fiscal 2027, focusing on cost of goods, marketing spends, and operating overheads [7] - The company plans to support this acceleration through investments, including its supply chain agility program announced in July 2022, with benefits expected to increase from fiscal 2025 [7] Regional Challenges - Diageo has faced significant challenges in the Latin America and Caribbean (LAC) region, which represents 10% of its net sales, due to rapidly shifting consumer sentiment and elevated inventory levels in fiscal 2023 [8] - In North America, the U S spirits market has impacted Diageo's performance, with a 3% decrease in net sales in fiscal 2024, largely due to a 5% drop in volume [9] - Shares of Diageo have lost 9% in the past three months compared with the industry's decline of 19 4% [9] Industry and Competitor Highlights - Freshpet Inc (FRPT) delivered an earnings surprise of 144 5% in the last reported quarter, with current fiscal year sales and earnings expected to grow by 27 2% and 228 6%, respectively [11][12] - Vita Coco Company (COCO) has a trailing four-quarter earnings surprise of 17 6%, with current financial-year sales and earnings expected to grow by 3 8% and 29 7%, respectively [12][13] - The Boston Beer Company (SAM) has a trailing four-quarter average earnings surprise of 154 6%, with 2025 earnings expected to grow by 35 3% from the previous year [13][14]

The Official Spiced Rum Sponsor of the NFL is Serving Up More than Delicious Cocktails for Football Fans in New Orleans and at HomeNEW ORLEANS, Jan. 23, 2025 /PRNewswire/ -- When you think of New Orleans, you think Bourbon Street — renowned the the world over for its enduring one-of-a-kind spirit, electric energy, and of course, legendary cocktails. Bourbon Street's most iconic cocktails have one thing in common – rum. So then, why is it called Bourbon Street? In its fourth year as the Official Spiced Rum S ...