Hello, Share People. What's not to like about the latest six-month report from drinks giant Diageo (DGE)? It shows an encouraging return to growth, good cash generation and an increased dividend. So how has the mighty Diageo fended off the big drop in sales that must have followed closures of pubs, restaurants and nearly every other hospitality venture?
Back in April, I mused about how the spirits behemoth Diageo (DGE) was a great insight into the broader markets. Interestingly, the share price today is within one percent of where it was when I wrote about the company more than five months ago – which tells you just how much we have been treading water at multiple levels over that period. Anyhow, the above observation includes factoring in a 5% odd share price bump today. So what did the owner of the Johnnie Walker, Bell's, Smirnoff, Bailey's and Gordon's brands among many others say today in a pre-AGM trading commentary to induce such a reaction? And what can be discerned about the wider view of the world?...
Hello Share Mates. There is evidence that companies that sell a good time, like cinemas, leisure centres and drinks firms do better when times are difficult. It’s all to do with consolation. But thanks to the virus, that no longer really applies to the first two. However, Diageo (DGE), the famous drinks purveyor, could soon be back on its very sturdy feet...
Hello, Share Choosers. If you had shares in a brewer or drinks producer like Diageo (DGE), you will have seen your portfolio creak under the virus. For example, Heineken’s first-half underlying profits were down by 52.5%. While the company that does Budweiser and Stella Artois lost 45%. Diageo’s full-year to end June dropped by 14%, still a big blow...
Hello, Share Seekers. One of my favourite motes is that companies that purvey drink do better in hard times. Fortunately, I’ve not had a chance to test this theory very often. But in this particularly ‘hard time’ we may prove that the theory works in practice. So let’s have a look at one of the biggest drinks companies...
You may recall that Tom and I had a conversation back in October about Diageo (DGE) and how this loved-up bond proxy captured everything that was wrong about consensus investing. Naturally, shareholders who had followed our lead and sold could buy back today at a considerable discount to the share price back then...however what I like to think we highlighted was that the cosy consensus that such global consumer behemoths were always and everywhere a core portfolio holding is far from obvious…
