26 January 2023
If you are covering Diageo’s interim results, please see the following comments from Chris Beckett, head of equity research at Quilter Cheviot:
"This morning’s results show Diageo’s sales and profits have both beaten expectations which is certainly a good thing. However, while its sales in Europe and Asia remain strong, its performance in the USA is disappointing. That said, Tequila continues to sell well in the US, while Scotch is one of its best performing products elsewhere.
"The impact of the world opening back up after lockdown and the boost in sales as a result, can still be seen in these results but it will normalise from here onwards. Diageo’s guide on future performance is just about ok but the market will likely focus on the expectation of further normalisation in Europe and the USA as the pandemic now is firmly in the rear view mirror. The market is currently against this type of defensive name and shares will probably be weak today after these results. But the company’s long term focus on pricing power and premiumisation is clear to see in these numbers."
