Diageo H1 profit grows more slowly than forecast

Diageo (DEO) H1 adjusted EBIT +2.9% to £2.06B vs consensus for growth of 4.9%.

Net profit £1.6B vs £1.52B a year earlier.

EPS 63.5 pence vs 60.4 pence.

Sales £8.01B vs restated £8.13B; net sales +1.8% to £5.93B.

Pretax profit £2.13B vs £1.93B.

Plans cost-cutting program that will lower expenditure by £200M a year by 2017. Restructuring costs £200-250M.

North America net sales +4.6%, Western Europe -1%, Emerging markets +1.3%.

Super and ultra premium brands enjoyed good growth, with reserve brands +18.5%, although beer fell 2.6%.

Interim dividend +9%.

Diageo expects "top line improvement" in H2, and while "some markets may remain challenging," the company "is in good shape for the medium and long term." (PR)

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Comments (1)
  • spike77
    , contributor
    Comments (505) | Send Message
    I've been riding Diageo for a year or two based on their strategy of acquisition but now they are moving into the consolidation phase I am getting a bit nervous as it seems is the whole market. I'm up about 30% at present even with the recent price drops, so I think I'll sell half and put a stop loss on the remaining half. Unless someone knows of a better strategy?
    30 Jan 2014, 07:32 AM Reply Like
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