Forecast Of The Day: Diageo North America Volumes

+19.41%
Upside
188
Market
225
Trefis
DEO: Diageo logo
DEO
Diageo

What?

Trefis expects the total alcohol volumes sold by Diageo (NYSE:DEO) in North America (U.S. and Canada) to rise from 48.4 million in FY 2020 to 50.8 million equivalent units in FY 2021. An equivalent unit represents one nine-liter case of spirits.

Why?

Relevant Articles
  1. Should You Buy, Sell, Or Hold Diageo Stock Around $175?
  2. What’s Next For Diageo Stock After A 10% Fall In A Month?
  3. Is Diageo Stock Now A Good Bet At $200?
  4. What’s Behind Diageo Stock’s Recent Rise?
  5. Diageo Stock At $200: More Gains Likely?
  6. What’s Behind The 20% Rally In Diageo Stock?

Volumes declined sharply in FY 2020 due to the lockdowns and the closing of bars and restaurants. However, volumes are expected to rise sharply this year as the economy continues to re-open further, with Covid cases on the decline.

So What?

Higher volumes in North America should bode well for Diageo’s profitability, as average price realizations and margins from the region are meaningfully higher than the company average.

See Our Complete Analysis For Diageo

Looking for a balanced portfolio to invest in? Here’s a high-quality portfolio to beat the market, with over 150% return since 2016, versus 85% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.

See all Trefis Price Estimates and Download Trefis Data here

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams