Will US Spirits Volume Growth Boost Diageo’s Year Ended June 2016 Results?
Diageo (NYSE:DEO) is expected to announce its second half and year ended June 2016 results on July 28th.
Key Trends That May Affect The Quarter:
1) Improvement In The US Segment
- Shipment growth in US spirits is expected for the second half.
- The company’s ‘activation army’ marketing campaign, directed at the bars and restaurants segment, seems to have had an impact.
- Recovery in this segment was seen in the quarterly growth rates in North America.
2) Impact Of The Brexit
- The Sterling has fallen considerably in the aftermath of the Brexit.
- Since a majority of Diageo’s revenues, almost 90%, come from regions outside of Britain, a weaker pound is bound to benefit its top line.
- Analysts at Credit Suisse stated that such a scenario of a weaker sterling could result in a 9% to 17% rise to the company’s earnings per share.
3) Sustained Performance In Africa
- An emerging and thirsty middle class has made Africa one of the most lucrative markets for the alcoholic beverage industry.
- Africa’s TBA (Total Beverage Alcohol) consumption per head is currently below a quarter of other regions across the world, besides India.
- The TBA volume is forecast to increase by ~25% over the next five years.
Have more questions on Diageo? See the links below:
- Why Did Diageo Invest In A Non-Alcoholic Drinks Company?
- Can There Be A Silver Lining For Diageo In The Aftermath Of The Brexit?
- How Will Brexit Impact Diageo?
- What Has Been Driving The U.S. Spirits Market?
- What Is The Share Of Premium Spirits In The U.S.?
- What Is The State Of The U.S. Distilled Spirits Market?
- What Is Diageo’s Position in India’s Alcoholic Beverage Market?
- Why Are We Bullish On Diageo?
- Why Is Diageo Bullish On The African Beer Market?
- Was Don Julio Tequila A Shot Worth Taking For Diageo?
- What Is India’s Share In The Net Sales Of Diageo Before And After The Purchase Of United Spirits Limited?
- Diageo: Year 2015 In Review
- How Will Diageo’s Revenue And EBITDA Composition Change In The Next Three Years?
- Where Will Diageo’s Growth Come From In The Next Three Years?
- What is Diageo’s Fundamental Value Based On Expected 2016 Results?
- What Is The Share Of Global Net Sales For Diageo, By Alcohol Category, And How Has It Changed?
- How Has Diageo’s Revenue And EBITDA Composition Changed In The Last 3 Years?
- How Has Diageo’s Volume Share Of Premium Spirits Changed Over The Years?
- What Are Diageo’s Highest And Lowest Growth Markets?
- By What Percentage Did Diageo’s Revenue & EBITDA Decline In The Last 3 Years?
- What Is Diageo’s Revenue And EBITDA Breakdown?
- How Has Diageo’s Volume Composition Changed In The Last 3 Years?
Notes:
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