These full-year results for Diageo (DGE) should give shareholders reason to celebrate. The spirits giant said sales rose across all regions, culminating in 4.3 per cent net sales growth at the group level. Management is so confident of continued success that it also upped the FY2019 cost-savings goal by £200m to £700m, with two-thirds of that planned to be re-invested back into the business. A share buyback programme aimed at returning £1.5bn to shareholders during FY2018 was also announced.
Sales in North America were up 3 per cent due to a 12 per cent increase in whiskey sales and 8 per cent in scotch, making up for an 8 per cent decline in vodka sales. Next year North America sales will include the acquisition of George Clooney’s Casamigos tequila brand, which the company expects to complete in the second half of the 2017 calendar year. Europe saw sales increase by 4 per cent, with a 3 per cent increase in Great Britain driven by strong distribution of Tanqueray gin.
Analysts at Whitman Howard expect EPS of 110.3p for the year ending June 2018, compared to 108.5p in FY2017.
| DIAGEO (DGE) | ||||
| ORD PRICE: | 2,431p | MARKET VALUE: | £ 61.2bn | |
| TOUCH: | 2,430.5-2,431.5p | 12-MONTH HIGH: | 2,435p | LOW: 1,946p |
| DIVIDEND YIELD: | 0.0% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 410p* | NET DEBT: | 65% | |
| Year to 30 June | Turnover (£bn) | Pre-tax profit (£bn) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 11.3 | 3.06 | 98.0 | 47.4 |
| 2014 | 10.3 | 2.71 | 93.0 | 51.7 |
| 2015 | 10.8 | 2.93 | 95.0 | 56.4 |
| 2016 | 15.6 | 2.86 | 89.5 | 59.2 |
| 2017 | 18.1 | 3.56 | 108.2 | 62.2 |
| % change | +16 | +25 | +21 | +5 |
| Ex-div: | 10 Aug | |||
| Payment: | 05 Oct | |||
| *Includes intangible assets of £12.6bn or 499p per share | ||||
