{"id":57297,"date":"2024-12-11T16:19:22","date_gmt":"2024-12-11T15:19:22","guid":{"rendered":"https:\/\/www.captrader.com\/?post_type=analyse&#038;p=57297"},"modified":"2026-05-04T15:42:54","modified_gmt":"2026-05-04T13:42:54","slug":"dgi-sample-portfolio-the-diageo-stock","status":"publish","type":"analyse","link":"https:\/\/www.captrader.com\/en\/analyse\/dgi-musterdepot-die-diageo-aktie\/","title":{"rendered":"DGI SAMPLE PORTFOLIO: THE DIAGEO SHARE"},"content":{"rendered":"<ul class=\"wp-block-list\">\n<li>Diageo is one of the world's largest players in the production of spirits and an established market leader in a reliable business model<\/li>\n\n\n\n<li>The range of strong core brands and the positioning in the premium segment ensure a high level of customer loyalty. In its target market, the British company enjoys an excellent reputation as a quality-conscious producer of alcoholic beverages<\/li>\n\n\n\n<li>Diageo diversifies along different product lines such as brands and global sales markets and is present in all relevant growth markets<\/li>\n\n\n\n<li>At the current price level, the British dividend aristocrat, which has been raising its dividend without interruption for 37 years, is convincing with a fair valuation compared to previous years<\/li>\n\n\n\n<li>Click here for the <a href=\"https:\/\/www.captrader.com\/en\/dividend-custody-account\/portfolio\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>DGI model portfolio<\/strong><\/a><strong> <\/strong>and here to the overview of this series <a href=\"https:\/\/www.captrader.com\/en\/dividend-custody-account\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>The dividend custody account<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"993\" height=\"434\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Aktienchart-Diageo.png\" alt=\"Line chart showing the GBP share price over 10 years, with an increase from 2015 to a peak in 2022 and a subsequent decline to 2024. The current price is GBP 24.46 with an increase of 1.51 %.\" class=\"wp-image-57271\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Aktienchart-Diageo.png 993w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Aktienchart-Diageo-300x131.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Aktienchart-Diageo-768x336.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Aktienchart-Diageo-18x8.png 18w\" sizes=\"auto, (max-width: 993px) 100vw, 993px\" \/><figcaption class=\"wp-element-caption\"><em>Diageo share chart (source: aktien.guide)<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Company profile and business model: who Diageo is and what it does<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Defining the exact milestone in which the history of Diageo begins is probably a matter of personal interpretation. The roots of today's company, which was formed in 1997 from the two companies <strong>Grand Metropolitan<\/strong> and <strong>Guinness <\/strong>according to the company website, date back to the year 1627. At least one member of the influential, Scottish-born <strong>Haig clans<\/strong> tried out his skills as a whisky distiller. The opening of the first commercially operated whisky distillery is secured <strong>John Haig &amp; Co Ltd.<\/strong> in the early 1720s. The family ties stretched across the Irish Sea to Dublin, where the <strong>Jameson Distillery<\/strong> was to become a major player in the industry. By the way: Jameson is now owned by <strong>Pernod Ricard<\/strong>one of Diageo's main competitors in the spirits business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Away from this began in the 18th century, in 1759 to be precise, <strong>Arthur Guinness<\/strong> with beer brewing in the legendary workplace <strong>St. James's Gate<\/strong> in Dublin. The company named after him, Guinness, concluded a 9,000-year (!) lease agreement with the Rainsford family for 45 British pounds per year. The Guinness brewery has been located on the site ever since. Guinness has outgrown the original four-hectare site and has therefore bought up the land, which also invalidated the 9,000-year lease.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"943\" height=\"943\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/St.-Jamess-Gate-Dublin.jpg\" alt=\"Large black gate with &quot;GUINNESS&quot; and logo in gold lettering, flanked by stone walls under a partly cloudy sky.\" class=\"wp-image-57285\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/St.-Jamess-Gate-Dublin.jpg 943w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/St.-Jamess-Gate-Dublin-300x300.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/St.-Jamess-Gate-Dublin-150x150.jpg 150w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/St.-Jamess-Gate-Dublin-768x768.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/St.-Jamess-Gate-Dublin-12x12.jpg 12w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><figcaption class=\"wp-element-caption\"><em>St. James's Gate in Dublin (Source: <\/em><a href=\"https:\/\/www.diageo.com\/en\/\" rel=\"nofollow noopener\" target=\"_blank\"><em>Official website<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In 1986, the prominent brewery and the world-renowned whisky producer also came full circle. The assets of the Haig distilleries were finally acquired as part of the parent company <strong>The Distillers Company<\/strong> from the smaller company Guinness. This transaction was accompanied by the so-called \"<a href=\"https:\/\/en.wikipedia.org\/wiki\/Guinness_share-trading_fraud\" rel=\"nofollow noopener\" target=\"_blank\"><strong>Guinness share-trading fraud<\/strong><\/a>\", the judicial investigation of which led to prison sentences for the people involved. Among those convicted was the former CEO of Guinness. As mentioned, Guinness plc merged with Grand Metropolitan in 1997. At that time, Grand Met operated as a conglomerate comprising a wide range of holdings in various sectors. The best-known brands in the drinks sector are probably <strong>Smirnoff Vodka<\/strong> and <strong>Baileys<\/strong>. Furthermore, most people are probably familiar with the fast food chain <strong>Burger King<\/strong> which, however, was divested following the formation of Diageo and the associated strategic focus on the beverage market in 2000.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"187\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Marken-Diageo-1024x187.png\" alt=\"Logos of various alcohol brands, including Johnnie Walker, Guinness, Tanqueray, Baileys, Smirnoff, Captain Morgan, Crown Royal, Don Julio, C\u00eeroc, Buchanan&#039;s, Casamigos, B&amp;B and Ketel One.\" class=\"wp-image-57282\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Marken-Diageo-1024x187.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Marken-Diageo-300x55.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Marken-Diageo-768x140.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Marken-Diageo-1536x280.png 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Marken-Diageo-18x3.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Marken-Diageo.png 1661w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Some Diageo brands (source: <\/em><a href=\"https:\/\/www.diageo.com\/en\/our-brands\/brand-portfolio\" rel=\"nofollow noopener\" target=\"_blank\"><em>Official website<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">With over 200 brands and a market presence in more than 180 countries, Diageo has established itself as one of the <strong>largest brand manufacturer in the world<\/strong> which employs more than 30,000 people. Diageo also owns a third of the premium champagne and cognac producer <strong>Moet Hennessy<\/strong>a subsidiary of the French luxury goods manufacturer <strong>LVMH<\/strong>as well as a majority stake in the Indian company <strong>United Spirits<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After a consolidation phase following the merger and some <strong>Deinvestments<\/strong>which were no longer considered part of Diageo's product portfolio, is at the center of the <strong>Gesch\u00e4ftsmodells<\/strong> the production and distribution of alcoholic beverages.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a leading company, Diageo is transforming the business <strong>six global brands<\/strong> on. These are <strong>Johnnie Walker, Baileys, Smirnoff, Captain Morgan, Tanqueray and Guinness<\/strong>. Diageo refers to these brands as its <strong>\"Global Giants<\/strong>\" in contrast to the \"Local Stars\" and \"Reserve\".<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Geographical diversification<\/strong> of Diageo is illustrated in the following diagram. The largest sales market is North America, followed by Europe and the Asia-Pacific region. While the share of spirits sold dominates in all markets, the disproportionately high share of the beer segment stands out in Europe and particularly in Africa and plays a significant role in sales in these regions.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"582\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Absatzmaerkte-Diageo-1024x582.png\" alt=\"World map showing market shares in the spirits sector: North America 39 %, Europe 24 %, Asia-Pacific 19 %, Latin America and Caribbean 9 %, Africa 9 %, with regional breakdown and key markets.\" class=\"wp-image-57278\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Absatzmaerkte-Diageo-1024x582.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Absatzmaerkte-Diageo-300x170.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Absatzmaerkte-Diageo-768x436.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Absatzmaerkte-Diageo-18x10.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Absatzmaerkte-Diageo.png 1065w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Geographical diversification measured by Diageo's turnover (source: <\/em><a href=\"https:\/\/www.diageo.com\/~\/media\/Files\/D\/Diageo-V2\/Diageo-Corp\/investors\/results-reports-and-events\/annual-reports\/diageo-annual-report-2024.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>Annual Report 2024, p. 32<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Analogous to the sales side, the <strong>Network of production sites<\/strong> reflects the broad diversification of Diageo's geographic footprint. The company owns production facilities around the world, including distilleries, breweries, packaging facilities, maturation warehouses, cooperages and distribution warehouses. Diageo's brands are also produced in facilities owned and operated by third parties and in joint ventures in several locations around the world.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"437\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Produktionsanlagen-Diageo-1024x437.png\" alt=\"Table with the countries and their main activities such as distillation, brewing and products such as beer, vodka and whisky.\" class=\"wp-image-57279\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Produktionsanlagen-Diageo-1024x437.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Produktionsanlagen-Diageo-300x128.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Produktionsanlagen-Diageo-768x328.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Produktionsanlagen-Diageo-18x8.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Globale-Produktionsanlagen-Diageo.png 1037w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>The geographical distribution of Diageo's largest production facilities (source: <\/em><a href=\"https:\/\/www.diageo.com\/~\/media\/Files\/D\/Diageo-V2\/Diageo-Corp\/investors\/results-reports-and-events\/annual-reports\/diageo-annual-report-2024.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>Annual Report 2024, p. 33<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Diversification continues in the <strong>Product portfolio<\/strong> continued. One example is the Scotch product group, Diageo's <strong>largest spirits category<\/strong>which generates around a quarter of total sales. Diageo's market share of global scotch sales, according to this <a href=\"https:\/\/media.diageo.com\/diageo-corporate-media\/media\/z5tccxdb\/2023-cagny-presentation.pdf\" rel=\"nofollow noopener\" target=\"_blank\">Presentation<\/a> 37 percent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Diversification across all product segments enables Diageo to respond well to temporary changes or new trends in consumer behavior and to take countermeasures.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"969\" height=\"260\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Produktmix-Diageo.png\" alt=\"Three pie charts show reported volume, net sales and marketing spend by category, including Scotch, vodka, US whiskey, Canadian whiskey, rum, IMFL whiskey, liqueurs, gin, tequila, beer and ready-to-drink beverages.\" class=\"wp-image-57284\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Produktmix-Diageo.png 969w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Produktmix-Diageo-300x80.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Produktmix-Diageo-768x206.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Produktmix-Diageo-18x5.png 18w\" sizes=\"auto, (max-width: 969px) 100vw, 969px\" \/><figcaption class=\"wp-element-caption\"><em>Product mix from Diageo (Source: <\/em><a href=\"https:\/\/www.diageo.com\/~\/media\/Files\/D\/Diageo-V2\/Diageo-Corp\/investors\/results-reports-and-events\/annual-reports\/diageo-annual-report-2024.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>Annual Report 2024, p. 44<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Another consequence of this strategic focus on the premium market is the targeted <strong>Acquisition policy<\/strong> of the British group. Diageo's corporate strategy for inorganic growth is geared towards the continuous acquisition of premium producers, while individual brands from the lower-priced \"Standard\" and \"Value\" segments are sold again.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"548\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/MA-Strategie-Diageo-1024x548.png\" alt=\"Bar chart showing Diageo&#039;s acquisitions and disposals by price category from the seventh financial year onwards. Premium and super-premium categories are highlighted, with notable acquisitions and disposals listed alongside.\" class=\"wp-image-57280\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/MA-Strategie-Diageo-1024x548.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/MA-Strategie-Diageo-300x161.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/MA-Strategie-Diageo-768x411.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/MA-Strategie-Diageo-18x10.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/MA-Strategie-Diageo.png 1479w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Diageo's Merger &amp; Acquisition balance sheet (source: <\/em><a href=\"https:\/\/media.diageo.com\/diageo-corporate-media\/media\/z5tccxdb\/2023-cagny-presentation.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>Cagny Presentation 2023, p. 30<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">At the <strong>ownership structure<\/strong> Diageo, there are no special features to be noted. The share of institutional investors dominates and amounts to just under 70 percent. This usually comes from the \"usual suspects\" in the asset management industry.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The long-standing CEO passed away on June 7 <strong>Sir Ivan Menezes<\/strong> after an emergency operation. <strong>Debra Crew<\/strong>, then Chief Operating Officer and Menezes' designated successor, took over as CEO with effect from July 1, 2023. Prior to this, the US native worked in the industry at PepsiCo. Kraft Foods, Nestl\u00e9, Reynolds Tobacco and Mondelez International.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"735\" height=\"468\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Eigentuemerstruktur-Diageo.png\" alt=\"Table showing a list of nine investors with details of the value of shares held, the percentage of shares issued and the number of shares held.\" class=\"wp-image-57274\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Eigentuemerstruktur-Diageo.png 735w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Eigentuemerstruktur-Diageo-300x191.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Eigentuemerstruktur-Diageo-18x12.png 18w\" sizes=\"auto, (max-width: 735px) 100vw, 735px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Ownership structure of Diageo (source: tikr.com)<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Industry profile and competitive situation<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The characteristics of the business model of spirits producers such as <strong>Diageo<\/strong> makes a comparison with listed competitors possible without major restrictions. Any differentiating factors such as the degree of internationalization, the weighting of the individual sales segments or special features in the product range must be evaluated separately in a detailed analysis. In an initial comparison, I decided on the two competitors as an adequate guide <strong>Pernod Ricard<\/strong> and <strong>Brown-Forman<\/strong>. I have deliberately refrained from including Chinese spirits producers, as I focus exclusively on analyzing companies from North America and Europe. The following comparison is based on the evaluated fundamental data:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"987\" height=\"537\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Wettbewerbsvergleich-Diageo-Pernod-Ricard-Brown-Forman.png\" alt=\"A table comparing the financial ratios of Diageo, Pernod Ricard and Brown-Forman, including market capitalization, P\/E ratio, profit, dividends and more. Data in USD, valid as of December 10, 2024.\" class=\"wp-image-57292\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Wettbewerbsvergleich-Diageo-Pernod-Ricard-Brown-Forman.png 987w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Wettbewerbsvergleich-Diageo-Pernod-Ricard-Brown-Forman-300x163.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Wettbewerbsvergleich-Diageo-Pernod-Ricard-Brown-Forman-768x418.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Wettbewerbsvergleich-Diageo-Pernod-Ricard-Brown-Forman-18x10.png 18w\" sizes=\"auto, (max-width: 987px) 100vw, 987px\" \/><figcaption class=\"wp-element-caption\"><em>Competitive comparison of Diageo with Pernod Ricard and Brown-Forman (source: own presentation)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Notes on the values contained in the table:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Green or red coloring of the figures indicates growth or decline compared to the previous year<\/li>\n\n\n\n<li>All figures are stated in US dollars, whereby the figures shown as at the reporting date of this comparison of Diageo (GBP) and Pernod Ricard (euro) may differ from the current dollar exchange rate at the respective date of observation<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Diageo's financial situation<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">After gaining an overview of the industry in general and taking a closer look at the company, its management and the competition, we take a look at the balance sheet and the resulting <strong><a href=\"https:\/\/www.captrader.com\/en\/the-interpretation-of-financial-statements\/\" data-type=\"post\" data-id=\"14250\">Finanzkennzahlen<\/a> from Diageo<\/strong>. The focus here is on the aspects <strong>Growth, profitability<\/strong> and the <strong>Financing<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The first step in analyzing the financial situation is to look at the development of sales, profits and earnings. <a href=\"https:\/\/www.captrader.com\/en\/glossary\/cash-flow\/\" data-type=\"glossar\" data-id=\"45187\">Free Cash Flow<\/a> to. I have already discussed the internal distribution of sales per segment in the section on the business model above. On average, the top line has grown in the last five years from around <strong>four percent p.a.<\/strong> an.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"226\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Umsatzentwicklung-Diageo-1024x226.png\" alt=\"Diagram showing monthly sales and margin over time from 2018 to 2020, with a positive trend and forecast from mid-2020.\" class=\"wp-image-57287\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Umsatzentwicklung-Diageo-1024x226.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Umsatzentwicklung-Diageo-300x66.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Umsatzentwicklung-Diageo-768x169.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Umsatzentwicklung-Diageo-1536x339.png 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Umsatzentwicklung-Diageo-18x4.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Umsatzentwicklung-Diageo.png 1854w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Development of Diageo's turnover (source: Aktienfinder)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">At <strong>Earnings per share<\/strong> we have seen a positive upward trend for years. However, if we take the past financial year 2024 as an example, the <strong>Adjusted earnings per share<\/strong> by around 13.5 percent (GBP 1.42 vs. GBP 1.64). In the past financial year, Diageo generated a <strong>Net profit<\/strong> from <strong>USD 3.9 billion<\/strong> (2023: USD 4.5 billion). Note: Diageo has been reporting in US dollars for a year now, whereas previously the figures were reported in pounds sterling.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"226\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Gewinnentwicklung-Diageo-1024x226.png\" alt=\"Line chart showing profit, cash flows and dividends over time, with a general upward trend and projected data beyond the present.\" class=\"wp-image-57277\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Gewinnentwicklung-Diageo-1024x226.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Gewinnentwicklung-Diageo-300x66.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Gewinnentwicklung-Diageo-768x170.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Gewinnentwicklung-Diageo-1536x340.png 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Gewinnentwicklung-Diageo-18x4.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Gewinnentwicklung-Diageo.png 1850w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Development of Diageo's earnings per share (source: Aktienfinder)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The amount available to the company <strong>Free Cash Flow (FCF)<\/strong> can be used for investments in the company for organic growth, repayment of debt, expansion via company acquisitions, distribution of (increasing) dividends or share buybacks. In absolute figures, the financial picture from operating and free cash flow as well as capital investments (CapEx) for the period 2016 to 2023 is as follows. What is striking is the almost doubling of the CAPEX share and the associated effects on FCF since the 2022 financial year:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"265\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Free-Cashflow-Entwicklung-Diageo-1024x265.png\" alt=\"Bar chart showing the key financial figures of Diageo plc from June 2016 to June 2023: Cash flow from operating activities (blue), capital expenditure (black) and free cash flow (green), with fluctuating values.\" class=\"wp-image-57276\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Free-Cashflow-Entwicklung-Diageo-1024x265.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Free-Cashflow-Entwicklung-Diageo-300x78.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Free-Cashflow-Entwicklung-Diageo-768x199.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Free-Cashflow-Entwicklung-Diageo-1536x398.png 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Free-Cashflow-Entwicklung-Diageo-18x5.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Free-Cashflow-Entwicklung-Diageo.png 1561w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Development of Diageo's free cash flow (source: tikr.com)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A look at the <strong>Debt situation<\/strong> shows us that, based on the last financial year, Diageo has a share of interest-bearing financial liabilities of USD 22.5 billion, which in turn is offset by cash and cash equivalents and securities totaling USD 1.4 billion. Let us now divide the remaining net debt of USD 21.1 billion by the most recently generated <a href=\"https:\/\/www.captrader.com\/en\/glossary\/ebitda\/\" data-type=\"glossar\" data-id=\"45257\">EBITDA<\/a> of USD 6.5 billion results in a ratio of 3.2, which is (still) above the critical threshold of 3 (although this depends on the industry). The company is aiming for a debt level in a target corridor of 2.5 to 3 times EBITDA.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"274\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Nettoschulden-EBITDA-Diageo-1024x274.png\" alt=\"Line chart showing the net debt and EBITDA of Diageo plc from 2017 to 2023. EBITDA increases from 4,052 million in 2017 to 6,815 million in 2023. Net debt fluctuates and reaches a high of 20,670 million in 2023.\" class=\"wp-image-57283\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Nettoschulden-EBITDA-Diageo-1024x274.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Nettoschulden-EBITDA-Diageo-300x80.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Nettoschulden-EBITDA-Diageo-768x206.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Nettoschulden-EBITDA-Diageo-1536x412.png 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Nettoschulden-EBITDA-Diageo-18x5.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Nettoschulden-EBITDA-Diageo.png 1556w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Development of Diageo's net debt and EBITDA (source: <\/em><a href=\"https:\/\/app.tikr.com\/register?ref=0z54vt\" rel=\"nofollow noopener\" target=\"_blank\"><em>tikr.com<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"558\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Praesentation-Diageo-1024x558.png\" alt=\"Financial table with figures on net debt, average net debt, net interest expense and effective interest rate for financial years F24, F23 and the change between them.\" class=\"wp-image-57291\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Praesentation-Diageo-1024x558.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Praesentation-Diageo-300x163.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Praesentation-Diageo-768x418.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Praesentation-Diageo-18x10.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Praesentation-Diageo.png 1478w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Calculation of Diageo's debt (source: <\/em><a href=\"https:\/\/www.diageo.com\/~\/media\/Files\/D\/Diageo-V2\/Diageo-Corp\/investors\/results-reports-and-events\/our-results\/2024\/f24-prelims-results-presentation.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>Presentation Results Fiscal 2024, p. 2<\/em><\/a><em>8)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Around the topic <strong>Indebtedness<\/strong> and <strong>External financing<\/strong> nevertheless, it makes sense to look at the <strong>Interest profile<\/strong> and the <strong>Maturity structure<\/strong> of current liabilities. Finally, it is important to assess how vulnerable the company appears to be to the development of key interest rates and to what extent refinancing or rescheduling of existing liabilities could become necessary in the near future. The total amount of long-term liabilities maturing within the next three years is around USD 5 billion. Standard &amp; Poor's rates Diageo's creditworthiness with a <a href=\"https:\/\/www.diageo.com\/en\/investors\/debt-investors\" rel=\"nofollow noopener\" target=\"_blank\">Credit rating<\/a> with the rank of <strong>Investment Grade A- <\/strong>with a stable outlook.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"411\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Diageo-Langfristig-1024x411.png\" alt=\"Table with contractual obligations and commitments as at June 30, 2024 with maturity amounts in various periods. Non-current liabilities and interest obligations are highlighted. The total amount is 32,299 million.\" class=\"wp-image-57289\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Diageo-Langfristig-1024x411.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Diageo-Langfristig-300x120.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Diageo-Langfristig-768x308.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Diageo-Langfristig-18x7.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-Diageo-Langfristig.png 1049w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Future cash obligations of Diageo (source: <\/em><a href=\"https:\/\/www.diageo.com\/~\/media\/Files\/D\/Diageo-V2\/Diageo-Corp\/investors\/results-reports-and-events\/annual-reports\/diageo-annual-report-2024.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>Annual Report 2024, p. 236<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, in connection with Diageo's debt, it should be mentioned that the beverage group raises the majority of its liabilities in three different currencies. The composition of the liabilities denominated in GBP, euros and USD is as follows <strong>Debt securities<\/strong> is shown in the chart below:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"521\" height=\"496\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-in-Waehrungen-Diageo.png\" alt=\"Table of gross borrowings by currency for 2023 and 2024, showing cash equivalents and borrowings in USD, euro, pound sterling and other currencies.\" class=\"wp-image-57290\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-in-Waehrungen-Diageo.png 521w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-in-Waehrungen-Diageo-300x286.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Verbindlichkeiten-in-Waehrungen-Diageo-13x12.png 13w\" sizes=\"auto, (max-width: 521px) 100vw, 521px\" \/><figcaption class=\"wp-element-caption\"><em>Cash and liabilities in currencies (source: <\/em><a href=\"https:\/\/www.diageo.com\/~\/media\/Files\/D\/Diageo-V2\/Diageo-Corp\/investors\/results-reports-and-events\/annual-reports\/diageo-annual-report-2024.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><em>Annual Report 2024, p. 205<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, we look at the <strong>Profitability<\/strong> of Diageo based on the development of gross, operating and net margins. The stability of the gross and operating margins at a high level of around 60 and 30 percent respectively is a positive feature. Diageo has the highest profit margin in the industry.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"228\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Margenentwicklung-Diageo-1024x228.png\" alt=\"Line chart showing sales and margin trends over time, with actual data up to the end of 2016 and a forecast from 2017 onwards. Blue, red and green lines represent net sales, operating margin and net margin respectively.\" class=\"wp-image-57281\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Margenentwicklung-Diageo-1024x228.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Margenentwicklung-Diageo-300x67.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Margenentwicklung-Diageo-768x171.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Margenentwicklung-Diageo-1536x341.png 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Margenentwicklung-Diageo-18x4.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Margenentwicklung-Diageo.png 1854w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Development of Diageo's margins (source: Aktienfinder)<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Opportunities &amp; risks<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Diageo is represented worldwide with various (premium) brands in different product segments in the spirits sector and has created a global distribution and production network. With over 200 brands and a market presence in more than 180 countries, Diageo has positioned itself as a <strong>established global player<\/strong>which employs more than 30,000 people. Diageo also owns a third of the premium champagne and cognac producer Mo\u00ebt Hennessy, a subsidiary of the French luxury goods manufacturer LVMH, as well as a majority stake in the Indian company United Spirits Limited.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The positioning of Diageo's products as lifestyle brands is in <strong>Emerging markets<\/strong> such as China and India. In the long term, Diageo is counting on a global improvement in the economic situation and thus on a steadily growing number of people with disposable income who can afford to consume higher-priced alcohol. Furthermore, the products are partly protected from competition due to legal and natural restrictions. For example <strong>Scotch<\/strong> a protected designation for a whisky that has been distilled and matured in Scotland. The required maturation process for these spirits also protects Diageo from competition and makes it unattractive for companies from outside the industry to enter the market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In recent decades, Diageo has gained sufficient experience in acquisitions and the subsequent integration of the acquired companies into the overarching business model without seriously jeopardizing the company's financial health. On the other hand, the interest service is currently higher than in previous years. The maturity structure of the <strong>Borrowed capital<\/strong> The financial situation, which can currently be described as solid, may be negatively impacted by higher refinancing costs in phases up to 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Different regulatory provisions, such as those on addiction prevention, as well as the socio-politically questionable framing of \"<strong>Sin shares<\/strong>\", which includes alcohol as well as tobacco and gambling, cannot be dismissed out of hand. The alcohol ban introduced in Germany <a href=\"https:\/\/de.wikipedia.org\/wiki\/Alkopopsteuergesetz_(Deutschland)\" rel=\"nofollow noopener\" target=\"_blank\">Special tax on alcopop drinks<\/a> is a striking example of event-driven legislation, which the <strong>state regulator<\/strong> literally boxed its way through. Further changes in this area could represent a difficult-to-calculate obstacle to growth.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, a <strong>Changed consumer behavior<\/strong> alcohol as a potential risk factor. Although the reduced consumption of alcohol has less of an impact on the high-priced premium segment, Diageo's beer division (particularly the Guinness brand) is also exposed to this risk, albeit to a lesser extent. It is no wonder that the British company is quite active in <a href=\"https:\/\/www.diageo.com\/en\/news-and-media\/press-releases\/2024\/diageo-expands-leading-position-in-non-alc-spirits-with-acquisition-of-ritual-zero-proof\" rel=\"nofollow noopener\" target=\"_blank\">Acquisitions of non-alcoholic spirits producers<\/a> shows.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Current valuation of the Diageo share<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For the valuation of companies, I use the so-called <strong>Enterprise Value<\/strong> (EV) is used. In the case of a takeover, the EV indicates the amount required to purchase the assets required for operations and excludes the non-operating assets. I relate this key figure to operating profitability (before interest, taxes and investments (CAPEX)), expressed as EBITDA. The prevailing opinion is that a value of less than 10 indicates a \u201ehealthy valuation\u201c - as is always the case with generic <strong>Rules of thumb <\/strong>the company-specific context must be considered in the analysis by the careful investor himself. In the case of Diageo, we have to consider a similar <strong>Valuation result of 14.2 <\/strong>look back to the year 2020:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"323\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/EV-EBITDA-Diageo-1024x323.png\" alt=\"Line chart showing the EV\/EBITDA ratio from 2016 to 2024, fluctuating between 10 and 30, with a peak in 2021 and a downward trend until 2024.\" class=\"wp-image-57275\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/EV-EBITDA-Diageo-1024x323.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/EV-EBITDA-Diageo-300x95.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/EV-EBITDA-Diageo-768x242.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/EV-EBITDA-Diageo-18x6.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/EV-EBITDA-Diageo.png 1088w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Enterprise Value to EBITDA of Diageo (Source: Seeking Alpha)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Maximum decrease<\/strong> in the last six years amounted to approx. <strong>38 Prozent <\/strong>a few weeks ago this year:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"983\" height=\"497\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Unterwasser-Chart-Diageo.png\" alt=\"A line chart from 2019 to 2025 shows fluctuating trends with a general decline that will reach -34.36 % by 2025.\" class=\"wp-image-57288\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Unterwasser-Chart-Diageo.png 983w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Unterwasser-Chart-Diageo-300x152.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Unterwasser-Chart-Diageo-768x388.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Unterwasser-Chart-Diageo-18x9.png 18w\" sizes=\"auto, (max-width: 983px) 100vw, 983px\" \/><figcaption class=\"wp-element-caption\"><em>Underwater chart of Diageo (source: aktien.guide)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Over the past six years, an investment in Diageo has yielded<strong> Total Return<\/strong>, including dividends received, a <strong>Overall performance<\/strong> from lean <strong>1.3 percent <\/strong>for the investor. Calculated on the <strong>last ten years<\/strong> the total return amounts to no less than <strong>39.7 percent<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"998\" height=\"450\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Total-Return-Diageo.png\" alt=\"Line chart comparing two data sets from 2019 to 2025, with one line ending at an increase of 12.5 % and the other at a decrease of 12.01 %.\" class=\"wp-image-57286\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Total-Return-Diageo.png 998w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Total-Return-Diageo-300x135.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Total-Return-Diageo-768x346.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Total-Return-Diageo-18x8.png 18w\" sizes=\"auto, (max-width: 998px) 100vw, 998px\" \/><figcaption class=\"wp-element-caption\"><em>Total return of Diageo (source: aktien.guide)<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Capital allocation of Diageo<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Since meanwhile <strong>37 years<\/strong> Diageo pays an annually higher dividend to its shareholders. This allows Diageo to join the illustrious circle of shareholders, whose number is manageable. <strong>Dividend aristocrats<\/strong> from Europe that have increased their dividend payments to shareholders every year for at least 25 years. The 37 years can be calculated by adding the dividend history of the predecessor companies. Diageo itself was only officially founded in 1997.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"987\" height=\"410\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Dividendenhistorie-Diageo.png\" alt=\"Bar chart showing Diageo&#039;s annual dividend in GBP from 2000 to 2029, with steady growth over the years, reaching GBP 1.05 in 2029.\" class=\"wp-image-57273\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Dividendenhistorie-Diageo.png 987w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Dividendenhistorie-Diageo-300x125.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Dividendenhistorie-Diageo-768x319.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Dividendenhistorie-Diageo-18x7.png 18w\" sizes=\"auto, (max-width: 987px) 100vw, 987px\" \/><figcaption class=\"wp-element-caption\"><em>Dividend history of Diageo (source: aktien.guide)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">At the current share price of GBP 24.58, this results in a <strong>Dividend yield <\/strong>from<strong> 3.23 percent<\/strong>. The <strong>Five-year dividend growth rate<\/strong> amounts to <strong>4.1 percent<\/strong> p.a. or <strong>5.4 percent<\/strong> p.a. in the <strong>Ten-year period<\/strong>. The company last increased its dividend by five percent at the end of July. To round things off, here is an overview of the last five dividend increases:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>2023<\/strong>: 5 %<\/li>\n\n\n\n<li><strong>2022<\/strong>: 5 %<\/li>\n\n\n\n<li><strong>2021<\/strong>: 3,8 %<\/li>\n\n\n\n<li><strong>2020<\/strong>: 1,9 %<\/li>\n\n\n\n<li><strong>2019<\/strong>: 5 %<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Dividend payments are made as <strong>Intermediate<\/strong> and <strong>Final dividend <\/strong>semi-annually in April and October. The ratio of distributions is generally 40:60.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If we take the average value of the <strong>Free Cash Flow<\/strong> of the last three years as the basis for determining the <strong>Payout ratio<\/strong> we end up with a comfortable result of <strong>77.1 percent<\/strong> for Diageo's payout ratio. Based on the annual result for the 2024 financial year, this results in a value of 85.6%. Over the past six years, the <strong>Number of shares outstanding<\/strong> added together by <strong>9.7 percent<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"982\" height=\"449\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Aktienrueckkaeufe-Diageo.png\" alt=\"Line graph showing a steady percentage decline from 2019 to 2025, with a peak at -95.5 %.\" class=\"wp-image-57272\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Aktienrueckkaeufe-Diageo.png 982w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Aktienrueckkaeufe-Diageo-300x137.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Aktienrueckkaeufe-Diageo-768x351.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/12\/Aktienrueckkaeufe-Diageo-18x8.png 18w\" sizes=\"auto, (max-width: 982px) 100vw, 982px\" \/><figcaption class=\"wp-element-caption\"><em>Diageo share buybacks (source: aktien.guide)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The last <a href=\"https:\/\/www.diageo.com\/en\/news-and-media\/press-releases\/2024\/2024-preliminary-results-year-ended-30-june-2024\" rel=\"nofollow noopener\" target=\"_blank\"><strong>Aktienr\u00fcckkaufprogramm<\/strong><\/a> of USD 1 billion was completed at the end of the 2024 financial year (1.7.2023 to 30.6.2024) and all repurchased shares were canceled. Diageo is using this instrument flexibly to return excess capital to shareholders. The current focus is on reducing debt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion: Considerations for my decision to invest in Diageo<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Thanks to a portfolio of strong brands, Diageo has a market-leading position compared to its competitors in the industry. The British spirits producer has positioned itself in attractive markets with growth opportunities and good geographical diversification. The mix of long-term stable earnings and cash flows from the core business as well as high-quality investments (Mo\u00ebt Hennessy, United Spirits) represent an attractive time to buy at the current valuation level for investors with a long-term investment horizon.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite current challenges in the industry and a depressed consumer sentiment, the company has delivered a robust financial performance. Diageo remains a major player in the global beverage market and is well positioned to capitalize on future growth opportunities with premium products in the gin, tequila and whisky categories. A progressive capital allocation policy of acquisitions, dividend growth and share buybacks is on top.<\/p>","protected":false},"excerpt":{"rendered":"<p>Unternehmensprofil und Gesch\u00e4ftsmodell: Wer ist und was macht Diageo Den genauen Markstein zu definieren, in welchem Jahr die Geschichte von Diageo beginnt, ist wohl eine pers\u00f6nliche Auslegungssache. Die Wurzeln des heutigen Unternehmens, dass sich im Jahr 1997 aus den beiden Unternehmen Grand Metropolitan und Guinness bildete, reichen laut der Firmenwebsite bis in das Jahr 1627 [&hellip;]<\/p>\n","protected":false},"author":45,"featured_media":47388,"template":"","analysen-kategorie":[4365,850],"class_list":["post-57297","analyse","type-analyse","status-publish","has-post-thumbnail","hentry","analysen-kategorie-diageo","analysen-kategorie-dividenden-depot"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analyse\/57297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analyse"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/analyse"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/45"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media\/47388"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=57297"}],"wp:term":[{"taxonomy":"analysen-kategorie","embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analysen-kategorie?post=57297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}