DIAGEO is under pressure to set new courses because investors are tired of getting tired of selling in the demand of alcohol.
On Tuesday, when FTSE 100 SPIRITS GIANT announces the results of half a year, all eyes will be Nick Jangiani, the highest executive of Debla. Investors have called for pairs, plans to show more clearly the prospects of Diadio, close costs, reduce leverage.
There are signs that shareholders are starting to lose patience.
Kai Lehman, a senior analyst from Flosbach von Stoach, the top 20 investors of Diazio, said: “The current 5-7 % medium -term organic sales growth goal seems to be unrealistic.”
The results will be released a few days after the stock price of Diageo rises to the top of FTSE 100. This is promoted by the report that the company is selling a big hit brand Guinness or 34 % of the LVMH drink business.
Despite the quick denial of Dijio last Sunday, and after confirmation of $ 81 million in the Guinness brewery business in Ghana, the rise has been an investor to shake up. It was a sign.
Groups, which are listed in London, which account for about 4 % of the world’s alcohol sales, are listed in London, which includes Johnny Walker, Suminov, and Dongjurio, to reflect more realistic pictures as Diagio’s important US demand collapses. It is expected to be reduced in medium -term sales guidance. market.
When consumers spent savings in expensive cocktails, the growth of a wider industry is stagnant as the drinker reduces alcohol as the covid-19 and the subsequent recovery reduce alcohol. The hangover is a hammer of spirits and is currently trading in a larger consumer category at a significant discount. The stock price states that a US surgeon in January should warn alcohol -addicted drinks to raise the relevance of cancer to increase the recognition.
Some investors have been claiming that Diageo has been claiming for a long time, claiming that the economic retreat is temporary, and promises recovery that has not been realized. Increase in weight loss drugs (alcohol consumption can be reduced, and moderation increases are causing anxiety. Veteran investment manager Terry Smith said early this year. I thrown.
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CHRIS Rossbach, a Diageo shareholder, a private investment office, a management partner of J -STERN & CO, states that he wants to focus on finding business efficiency by hoping that management will “clearly clarify the investment case”. I did it.
Tuesday, since Jhangiani participated in Coca-Cola Bottler CCEP, it has been the first trading update since the new chairman, former public servant and BP executive John Manzoni. Shareholders and analysts say that new teams provide opportunities to reset the story.
“We have to see the crew who is still (crew) completely aware of the potential of the portfolio.. She must take initiative, reinvest, and continue attacking. “Losbach said,” I want to focus more on cost and efficiency. “
The crew became the CEO in the summer of 2023 after Ivan Meneses IR, who had been led by Daizio for 10 years. Previously, the crew, who had spent stinting as a group of North America, has been facing investor’s skepticism since he was forced to issue a shock profit warning following the sluggish sales in Latin America. Her CFO, Lavanya CHANDRASHEKAR, resigned immediately. The company has recently appointed a new investor -related responsible person.
In the last transaction update, Spirits Maker reported the first global sales since 2020 and reduced the stock by more than 9 % in early transactions. The global sales of 12 months to the end of June decreased by 1.4 % to $ 20.3 billion.
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Lehmann in Flossbach Von Storch said it would like to provide a “fresh idea” for how to strengthen growth profiles. “We miss the urgency of interest rising, as we like to reduce leverage,” he added.
DIAGEO has accumulated a level of pure debt equivalent to $ 20 billion in the balance sheet, causing concerns among investors that the burden will reduce profits. The target leverage ratio is 2.5 to 3 times pure bonds. The ratio of the end of the 2024 fiscal year in 2024 was tripled.
Jhangani focused on shareholder returns in a previous role in CCEP, which was popular with investors. Jeffrey’s analyst Ed Mandy said they are looking for him to look for him, plan to reduce costs, and to set his sense of security. “I want to see the dividends growing,” he said.
Guinness has caught recent headlines, but some shareholders have not been looking for Diageo to sell Financial Times to sell famous sturdy sturdy. The drink enjoyed an unprecedented demand when he was ready for Christmas, and some pubs dried out and criticized Diagio to prevent the aperture of the supply.
Stern Rosbach said, “It’s always good to think about the reorganization of a portfolio,” but Guinness was an irreplaceable brand. 。 。 It’s not clear that the premium they gain is better than those who can achieve themselves. ”
The top 20 shareholders agree that Diazio should “definitely maintain” Guinness.
DIAGEO steadily offloads low -performance brands, such as Venezuela’s lamb Pampero and the Netherlands liqueur safari. The luxurious vodka brand Cîroc is also reported in the chopping block. The commercial association with the brand and the rapper Sean Coms ended up a few months before being charged with sexual trafficking last year. He denies the claim.
Advisors near the company may have been considering further sales, and Dedio has always reviewed portfolios.
“It depends on how aggressively they want to delete,” he says, and the company sells something that does not fit the portfolio naturally if they can “grow into debts” or if they are more careful. Consider that. The African beer business, East Africa brewery based in Kenya.
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DIAGEO has already sold other African beer subsidiaries to the “asset light” model that retains the ownership of the brand, but unlike the Coca -Cola bottling system, the operation and distribution of brewery are located. It is sold to the operating partner. 。
Analysts have reported that Diageo will grow 0.4 % of the organic sales in six months until December, and expects operating income to decrease by 2.2 %. Its operation margin is expected to be reduced to 79 basic points.
“The bottom line was that we had a little boom and bust on the spirits, and we are now trying to clean the base,” said JP Morgan’s analyisterin Panney. I did it. “It is very important to recognize this and take the market through the new story.”
