Diageo (DGE)

[ADrunkenMarcus]

Diageo is, for me, one of my longest shareholdings - held since 1998 when I inherited a number and was too young to own them! The interim dividend per share, alone, is well in excess of what the full year dividend used to be. It grinds out reliable, steady dividend growth year after year.

Best wishes


Mark.

[idpickering]

Diageo announces next phase of return of capital programme

Diageo plc (Diageo) today announces that it is commencing the third phase of its previously announced return of capital (ROC) programme of up to £4.5 billion to shareholders to be completed during fiscal 23.

Under the first two phases of the ROC programme, which were completed on 31 January 2020 and 11 February 2022 respectively, Diageo repurchased shares with an aggregate value of £2.25 billion.

Diageo is announcing today that it has entered into a non-discretionary agreement with UBS AG London Branch (UBS) to enable the company to buy back shares with an aggregate value of up to £1.7 billion, of which the repurchase of shares with an aggregate value of up to £1.4 billion will be completed by 30 June 2022. In each case the aggregate value of shares repurchased will be net of any fees payable to or by UBS under the terms of the agreement. This agreement will commence on 21 February 2022 and will end no later than 5 October 2022. The purpose of the repurchases is to reduce the share capital of Diageo and all shares repurchased under this agreement will be cancelled.

Further execution phases of the ROC programme, utilising the most appropriate mechanic of either share buybacks or special dividends depending on market conditions, will be subject to future announcements.

https://www.investegate.co.uk/diageo-pl ... 00082038C/

[77ss]

Diageo announces next phase of return of capital programme

Diageo plc (Diageo) today announces that it is commencing the third phase of its previously announced return of capital (ROC) programme of up to £4.5 billion to shareholders to be completed during fiscal 23.

Under the first two phases of the ROC programme, which were completed on 31 January 2020 and 11 February 2022 respectively, Diageo repurchased shares with an aggregate value of £2.25 billion.

Diageo is announcing today that it has entered into a non-discretionary agreement with UBS AG London Branch (UBS) to enable the company to buy back shares with an aggregate value of up to £1.7 billion, of which the repurchase of shares with an aggregate value of up to £1.4 billion will be completed by 30 June 2022. In each case the aggregate value of shares repurchased will be net of any fees payable to or by UBS under the terms of the agreement. This agreement will commence on 21 February 2022 and will end no later than 5 October 2022. The purpose of the repurchases is to reduce the share capital of Diageo and all shares repurchased under this agreement will be cancelled.

Further execution phases of the ROC programme, utilising the most appropriate mechanic of either share buybacks or special dividends depending on market conditions, will be subject to future announcements.

https://www.investegate.co.uk/diageo-pl ... 00082038C/

The mention of a possible special interested me. However, after all the buybacks there is not a great deal left of the £4.5bn (just £0.55bn).

Or about 23p/share at most, if my calculations are correct.

[kempiejon]

Further execution phases of the ROC programme, utilising the most appropriate mechanic of either share buybacks or special dividends depending on market conditions, will be subject to future announcements.

Is just as turn of phrase, either buyback or special, DGE hasn't paid a special in 40 years and I'm prepared to bet it won't this time either.

[idpickering]

Diageo launches and prices two series of fixed rate euro-denominated bonds and two series of fixed rate sterling-denominated bonds/

Diageo, a global leader in beverage alcohol, yesterday launched and priced in aggregate €1,650 million of fixed rate euro-denominated bonds and in aggregate £900 million of fixed rate sterling-denominated bonds under its European Debt Issuance Programme. The issuer of the euro-denominated bonds will be Diageo Capital B.V. and the issuer of the sterling-denominated bonds will be Diageo Finance plc, and in each case the payment of principal and interest will be fully guaranteed by Diageo plc.

The drawdowns will consist of the issue of €750 million bonds due June 2029 with a coupon of 1.500% per annum, €900 million bonds due June 2034 with a coupon of 1.875% per annum, £300 million bonds due June 2028 with a coupon of 2.375% per annum and £600 million bonds due June 2038 with a coupon of 2.750% per annum. Proceeds from each issuance will be used for general corporate purposes. In relation to the euro-denominated bonds, Barclays Bank PLC, BofA Securities Europe SA, Deutsche Bank Aktiengesellschaft, Goldman Sachs Bank Europe SE have been appointed as joint active bookrunners and Credit Suisse Bank (Europe) S.A., RBC Europe Limited and Standard Chartered Bank have been appointed as joint passive bookrunners. In relation to the sterling-denominated bonds, Barclays Bank PLC, Deutsche Bank AG, London Branch, Goldman Sachs Bank Europe SE, Merrill Lynch International have been appointed as joint active bookrunners and Credit Suisse International, RBC Europe Limited and Standard Chartered Bank have been appointed as joint passive bookrunners.

https://www.investegate.co.uk/diageo-pl ... 00073977H/

[Dod101]

Diageo launches and prices two series of fixed rate euro-denominated bonds and two series of fixed rate sterling-denominated bonds/

Diageo, a global leader in beverage alcohol, yesterday launched and priced in aggregate €1,650 million of fixed rate euro-denominated bonds and in aggregate £900 million of fixed rate sterling-denominated bonds under its European Debt Issuance Programme. The issuer of the euro-denominated bonds will be Diageo Capital B.V. and the issuer of the sterling-denominated bonds will be Diageo Finance plc, and in each case the payment of principal and interest will be fully guaranteed by Diageo plc.

The drawdowns will consist of the issue of €750 million bonds due June 2029 with a coupon of 1.500% per annum, €900 million bonds due June 2034 with a coupon of 1.875% per annum, £300 million bonds due June 2028 with a coupon of 2.375% per annum and £600 million bonds due June 2038 with a coupon of 2.750% per annum. Proceeds from each issuance will be used for general corporate purposes. In relation to the euro-denominated bonds, Barclays Bank PLC, BofA Securities Europe SA, Deutsche Bank Aktiengesellschaft, Goldman Sachs Bank Europe SE have been appointed as joint active bookrunners and Credit Suisse Bank (Europe) S.A., RBC Europe Limited and Standard Chartered Bank have been appointed as joint passive bookrunners. In relation to the sterling-denominated bonds, Barclays Bank PLC, Deutsche Bank AG, London Branch, Goldman Sachs Bank Europe SE, Merrill Lynch International have been appointed as joint active bookrunners and Credit Suisse International, RBC Europe Limited and Standard Chartered Bank have been appointed as joint passive bookrunners.

https://www.investegate.co.uk/diageo-pl ... 00073977H/

Is that additional debt or replacing some maturing debt? If the former they are obviously gearing up their Balance Sheet om quite a significant way by buying back equity and issuing debt. Does that tell us anything?

Dod

[idpickering]

Preliminary Results.

Diageo delivers strong performance while investing in long-term growth

Delivered strong net sales growth across all regions

- Reported net sales of £15.5 billion, up 21.4%, primarily driven by strong organic net sales growth, up 21.4%, with strong double-digit growth across all regions.

- Growth reflects continued recovery of the on-trade, resilient consumer demand in the off-trade and market share gains, and was underpinned by favourable industry trends of spirits taking share of total beverage alcohol and premiumisation(1).

- Price/mix growth was 11.1 percentage points, reflecting positive mix from strong performance in super-premium-plus brands, and mid-single digit price growth driven by price increases across all regions.

Expanded operating margin while increasing marketing investment

- Reported operating profit of £4.4 billion, up 18.2%, primarily driven by organic operating profit growth. Reported operating margin decreased 77bps, with organic margin expansion more than offset by exceptional operating items of £388 million.

- Organic operating profit grew 26.3%, with growth across all regions.

- Organic operating margin increased 121bps, reflecting a strong recovery in gross margin and leverage on operating costs, while increasing marketing investment.

- Price increases and supply productivity savings more than offset the absolute impact of cost inflation, and mostly offset the adverse impact on gross margin.

Delivered broad-based category growth and gained market share

- Growth was broad-based across categories, with particularly strong growth of scotch, tequila and beer.

- Premium-plus brands contributed 57% of reported net sales and drove 71% of organic net sales growth.

- Off-trade market share grew or held in over 85%(2) of total net sales value in measured markets.

And later;

A final dividend of 46.82 pence per share was recommended by the Board of Directors on 27 July 2022 for approval by shareholders at the Annual General Meeting scheduled to be held on 6 October 2022 bringing the full year dividend to 76.18 pence per share for the year ended 30 June 2022. As the approval will be after the balance sheet date, the final dividend has not been included as a liability.

Subject to approval by shareholders, the final dividend will be paid to holders of ordinary shares and US ADRs on register as of 26 August 2022. The ex-dividend date both for holders of ordinary shares and for US ADR holders is 25 August 2022. The final dividend, once approved by shareholders, will be paid to holders of ordinary shares on 20 October 2022 and payment to US ADR holders will be made on 25 October 2022. A dividend reinvestment plan is available to holders of ordinary shares in respect of the final dividend and the plan notice date is 23 September 2022.

https://www.investegate.co.uk/diageo-pl ... 00150004U/

Ian.

[ADrunkenMarcus]

Thanks Ian.

A positive, consistent performance from DGE.

Best wishes


Mark.

[idpickering]

Thanks Ian.

A positive, consistent performance from DGE.

Best wishes


Mark.

You're very welcome, thanks for your kind post.

As for DGE, I've held the share since 22 Jun 2016, and my average purchase price is £18.54 ps. I wish some of my other holdings had performed just as well too.

Ian.

[ADrunkenMarcus]

I’m hoping to hold DGE for 80+ years! I’m 24 years in so far and the nominal dividend yield on cost is heading towards 14.5%. In nominal terms, I’ve received dividends equivalent to about 180% of the book cost.

It’s a great example of a lower yielder that grows the dividend at a steady rate over time. Even the inflation-adjusted figure is pretty good.

Best wishes


Mark

[idpickering]

I’m hoping to hold DGE for 80+ years! I’m 24 years in so far and the nominal dividend yield on cost is heading towards 14.5%. In nominal terms, I’ve received dividends equivalent to about 180% of the book cost.

It’s a great example of a lower yielder that grows the dividend at a steady rate over time. Even the inflation-adjusted figure is pretty good.

Best wishes

Mark

Thanks for your input Mark, and I wish you well with your investment. I wish I'd had your foresight at that age. I was probably in a ditch somewhere in the World as I was a serving soldier at that age, so investing in any share mightn't have been my focus at the time.

Ian.

[ADrunkenMarcus]

Ian

No foresight on my part! I inherited a small holding in DGE from a great aunt with a false leg (no, I'm not kidding). So, the shares were held on my behalf as I was a child. She was a pretty shrewd investor. In fact, back then it was a new company created from Guinness and Grand Metropolitan - I'm not sure if she originally bought both before the merger.

Best wishes


Mark.

[idpickering]

Publication of Prospectus 2022.

Diageo plc, Diageo Finance plc and Diageo Capital B.V announce that, as part of the annual renewal of their European debt issuance programme, the following prospectus was approved by the Financial Conduct Authority on 22 August 2022 (the "Prospectus") and is available for viewing:

Programme for the Issuance of Debt Instruments of Diageo plc, as Issuer and Guarantor, and Diageo Finance plc and Diageo Capital B.V., as Issuers.

To view the full document, please paste the following URL into the address bar of your browser.

http://www.rns-pdf.londonstockexchange. ... 2-8-22.pdf

https://www.investegate.co.uk/diageo-pl ... 37187906W/

Ian.

[idpickering]

Diageo issues trading commentary ahead of AGM 2022.

Ivan Menezes, Chief Executive, commented:

"We have made a good start to fiscal 23, with organic net sales growth across all regions, reflecting our advantaged portfolio, our continued investment in brand building and our agile supply chain and culture. I would like to thank my colleagues for their continued creativity and drive.

We expect the operating environment to remain challenging with ongoing volatility due to geopolitical uncertainty, a weakening of consumer spending power, inflationary pressures and disruption related to Covid-19. However, I am confident in the resilience of our business and our ability to navigate these headwinds while executing our strategic priorities, including our ambitious 2030 sustainability plan.

We remain well-positioned to deliver our medium-term guidance for fiscal 23 to fiscal 25 of organic net sales growth consistently in the range of 5% to 7% and organic operating profit growth sustainably in the range of 6% to 9%."

https://www.investegate.co.uk/diageo-pl ... 00069438B/

Ian.

[Bouleversee]

Thanks, Ian. Encouraging, so of course the s.p. has gone down. It remains to be seen whether current events will drive us to drink or will mean that we can't afford to drown our sorrows.

[idpickering]

Result of Annual General Meeting.

https://www.investegate.co.uk/diageo-pl ... 13461719C/

Ian.

[Bouleversee]

Quite a large no. of votes against the directors' remuneration report.

[idpickering]

Intention to launch partial tender offer for shares in East African Breweries PLC.

Diageo, through its wholly-owned indirect subsidiary, Diageo Kenya Limited ("Diageo Kenya"), announces that it has served notice on East African Breweries PLC ("EABL") of its intention to increase its equity stake in EABL up to 65% by means of a partial tender offer made to other shareholders of EABL. As at the date of this announcement , Diageo Kenya holds 50.03% of the issued share capital of EABL.

https://www.investegate.co.uk/diageo-pl ... 00038578C/

Ian.

[idpickering]

Diageo announces next phase of return of capital programme.

Diageo plc (Diageo) today announces that it is commencing the fourth, and final, phase of its previously announced return of capital (ROC) programme of up to £4.5 billion to shareholders to be completed during fiscal 23.

Under the first three phases of the ROC programme, which were completed on 31 January 2020, 11 February 2022 and 5 October 2022 respectively, Diageo repurchased shares with an aggregate value of approximately £3.86 billion.

Diageo is announcing today that it has entered into a non-discretionary agreement with Merrill Lynch International (MLI) to enable the company to buy back shares with an aggregate value of up to approximately £0.64 billion (net of any fees payable to or by MLI under the terms of the agreement). This agreement will commence on 1 November 2022 and will end no later than 24 February 2023. The purpose of the repurchases is to reduce the share capital of Diageo and all shares repurchased under this agreement will be cancelled.

https://www.investegate.co.uk/diageo-pl ... 00078147E/

Ian.

[idpickering]

Diageo to acquire Don Papa Rum.

Today, Diageo announces it has reached an agreement to acquire Don Papa Rum, a super-premium, dark rum from the Philippines. The upfront consideration is €260 million with a further potential consideration of up to €177.5 million through to 2028 subject to performance, reflecting the brand's current growth potential.

The super-premium plus segment of the rum category is in the early stages of premiumisation, with a compound annual growth rate (CAGR) of 18% in Europe and 27% in the US between 2016-2021. Through the same period, Don Papa Rum consistently outperformed the market in Europe, delivering a 29% CAGR*.

Launched in 2012 by entrepreneur Stephen Carroll,together with Andrew John Garcia, Don Papa Rum is currently available in 30 countries, with France, Germany and Italy being its largest markets.Don Papa Rum has a unique flavour profile, highly distinctive packaging and an authentic brand story rooted in the beautiful island of Negros Occidental - known locally as'Sugarlandia'. The rum is distilled and aged on the island in American oak barrels. The combination of the local sugar cane and the oak barrel ageing in a hot tropical climate provides the foundation for Don PapaRum'slong, rich-textured finish, which carries flavours of vanilla, honey, and candied fruits.

https://www.investegate.co.uk/diageo-pl ... 00038944M/

Ian (I hold)