Diageo PLC (XTER:GUI)
€ 22.2 -0.30 (-1.33%) Market Cap: 48.94 Bil Enterprise Value: 67.63 Bil PE Ratio: 14.94 PB Ratio: 5.19 GF Score: 69/100

Half Year 2025 Diageo PLC Earnings Call (Q&A) Transcript

Feb 04, 2025 / 09:30AM GMT
Release Date Price: €28.14 (-1.76%)

Key Points

Positve
  • Diageo PLC (DEO) is experiencing strong growth in key brands like Guinness and Johnnie Walker, particularly in regions like Europe and Africa.
  • The company is seeing positive momentum in the US market, with plans to make Crown Royal Blackberry a permanent SKU and a strong innovation pipeline.
  • Diageo PLC (DEO) is implementing a robust revenue growth management strategy, focusing on pack price architecture and promo optimization.
  • Investments in digital and supply chain agility are expected to yield benefits starting in fiscal '26, enhancing operational efficiency.
  • The company is committed to frequent updates and transparency, aiming to provide clarity in a volatile market environment.
Negative
  • Diageo PLC (DEO) faces challenges in China due to tough macroeconomic conditions, impacting overall regional performance.
  • Ongoing investments in digital routes to market and higher staff costs are weighing on profitability in the second half.
  • The recent tariff announcement has created uncertainty, potentially impacting operating profit, particularly in the tequila segment.
  • There is a slowdown in premiumization in Northern and Southern Europe, affecting growth in those regions.
  • The company is experiencing pressure in the US spirits market, with growth concentrated in a few key brands, highlighting the need for diversification.
Operator

Good morning, and welcome to Diageo's Half '25 Interim Results Q&A Conference Call. (Operator Instructions)

This conference is being recorded. We're now ready to start the call. Sonya, please go ahead.

Sonya Ghobrial
Diageo PLC - Head of Investor Relations

Thank you very much. Good morning, everyone, and welcome to Diageo's First Half Fiscal '25 results Q&A. I'm Sonya Ghobrial, Head of Investor Relations, and I'm joined this morning by Debra Crew, CEO; and Nik Jhangiani, CFO.

Just to remind listeners on the call that in the discussions today, the company may make certain forward-looking statements including those that refer to our estimates, plans and expectations. Please refer to this morning's announcement and the company's UK

and US filing for more details, including factors that could lead to actual results to differ materially from those expressed in or implied by any such forward-looking statements.

Hopefully, you've all seen this morning's press release and presentation. For those listening to our webcast,

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