Spirits Giant Diageo Looking To Sell Its Beer Portfolio: Report
Portfolio Pulse from Lekha Gupta
Diageo PLC (NYSE:DEO) is reportedly planning to sell its beer portfolio, excluding Guinness. The sale includes brands like Smithwick's, Kilkenny, and Harp Lager. The beer segment has been a margin drag on Diageo's overall business. Diageo had previously warned of weaker H1 FY24 results, particularly in Latin America and the Caribbean, but expects H2 FY24 to show improvement in organic net sales and operating profit growth. DEO shares saw a slight increase of 0.11% in premarket trading.
December 06, 2023 | 11:55 am
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Diageo PLC is looking to divest its non-Guinness beer brands to enhance margins. The company anticipates weaker H1 FY24 results but expects improvement in H2 FY24.
The divestiture of the beer portfolio could be seen as a positive move to improve margins and focus on more profitable segments, which might be favorable for investors. However, the warning about weaker H1 FY24 results could temper investor enthusiasm, leading to a neutral short-term impact on the stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100