{"id":247663,"date":"2021-05-12T14:37:00","date_gmt":"2021-05-12T11:37:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/guinness-parent-diageo-restarts-plan-to-return-6-4-billion-to-shareholders-amid-strong-rebound\/"},"modified":"2021-05-12T14:37:00","modified_gmt":"2021-05-12T11:37:00","slug":"guinness-parent-diageo-restarts-plan-to-return-6-4-billion-to-shareholders-amid-strong-rebound","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/guinness-parent-diageo-restarts-plan-to-return-6-4-billion-to-shareholders-amid-strong-rebound\/","title":{"rendered":"#\n  Guinness parent Diageo restarts plan to return $6.4 billion to shareholders amid strong rebound"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3f9cd40fa3b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3f9cd40fa3b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/guinness-parent-diageo-restarts-plan-to-return-6-4-billion-to-shareholders-amid-strong-rebound\/#The_Smirnoff_maker_was_upbeat_in_its_full-year_profit_guidance\" >The Smirnoff maker was upbeat in its full-year profit guidance<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/guinness-parent-diageo-restarts-plan-to-return-6-4-billion-to-shareholders-amid-strong-rebound\/#Callum_Keown\" >Callum Keown<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Guinness parent Diageo restarts plan to return $6.4 billion to shareholders amid strong rebound<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"The_Smirnoff_maker_was_upbeat_in_its_full-year_profit_guidance\"><\/span>\n  The Smirnoff maker was upbeat in its full-year profit guidance<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000266206\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Guinness owner Diageo said it would resume plans to return \u00a34.5 billion ($6.36 billion) to shareholders, as its recovery from the COVID-19 pandemic continues to gather pace.<\/p>\n<p> The world\u2019s largest spirits maker postponed its return of capital (ROC) program in April 2020, having bought back shares worth \u00a31.25 billion, due to the impact of the pandemic.<\/p>\n<div class=\"paywall\">\n       But Diageo<br \/>\n        DEO,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208129584\/composite\" class=\"negative\">-1.65%<\/bg-quote><\/p>\n<p>        DGE,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205611832\/delayed\" class=\"positive\">+3.76%<\/bg-quote><br \/>\n       said it was now ready to restart the program following a strong performance in the first half of the fiscal year.\u00a0<\/p>\n<p>The Johnnie Walker and Smirnoff maker said it now expects operating profit to grow by \u201cat least 14% in the full year, slightly ahead of net sales growth.\u201d That convincingly beats the FactSet consensus for 10% operating profit growth.<\/p>\n<p>The company said \u00a31 billion would be paid to shareholders by the end of June 2022, with \u00a3500 million of share buybacks by November this year. The program will now be completed by the end of June 2024 \u2014 two years later than originally planned.<\/p>\n<p>The stock rose 4% in early London trading following the surprise announcement and is now more than up year-to-date. The U.S.-traded American depositary receipts were 3.8% higher in premarket trading.\u00a0<\/p>\n<p>The drinks industry endured a tough 2020 as the COVID-19 outbreaks forced restaurants, bars and pubs across the world to shut for large parts of the year. Diageo profits almost halved in the year ending June 30, 2020 as sales slumped and it was forced to take a \u00a31.3 billion write down.\u00a0<\/p>\n<p>The company\u2019s performance was boosted by strong demand for spirits in the U.S., where more people bought alcohol to drink at home. That trend continued into the second half of the calendar year, while the reopening of countries around the world has seemingly improved performance in recent months.<\/p>\n<p>Diageo said performance in North America, its largest market, remained strong, while Europe was benefiting from off-trade sales \u2014 supermarkets and stores \u2014 and the partial reopening of bars and restaurants. <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">Travel<\/a> retail remains \u201cseverely impacted,\u201d it added.<\/p>\n<p>Chief Executive Ivan Menezes said: \u201cI am very pleased with how our business is recovering in fiscal 21, our strong competitive performance across key markets and our robust cash generation.\u201d <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cWhen we have excess cash, we have been clear that we will seek to return it to shareholders,\u201d he added.\u00a0<\/p>\n<p>He expected the company to be back within the top end of its target leverage ratio of 2.5x to 3x by the end of June 2022.<\/p>\n<p><strong>Read:<\/strong> There\u2019s now an alcohol-free, low-calorie Guinness from Diageo<\/p>\n<p>RBC Europe analyst James Edwardes Jones noted that the company\u2019s guidance for operating profit and sales growth, was \u201cusefully ahead of expectations.\u201d He expected consensus upgrades of 3-4% for 2021 as a result of the trading update. <\/p>\n<p>\u201cDiageo is doing pretty much everything right in its pursuit of becoming a \u2018reliable compounder of growth\u2019 in our view, however the consequences of COVID-19 are likely to restrain margin growth from here,\u201d he said, maintaining a \u2018sector perform\u2019 rating on the stock.<\/p>\n<p>However, Hargreaves Lansdown equity analyst William Ryder said that while it was good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> for investors, there was a case for keeping the share buybacks on ice a little longer, noting that debt is \u201cstill higher than ideal\u201d and the leverage ratio target higher than it needs to be.<\/p>\n<p>\u201cWhat\u2019s more, the shares are currently trading on a forward PE (price to earnings) ratio of 25.7, which is well above the long run average of 19.6. Diageo is a strong business with excellent brands, so while the valuation is relatively high, it\u2019s not ridiculous. <\/p>\n<p>\u201cHowever, together, debt and valuation make a reasonable case for delaying further buybacks a little longer.\u201d<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Callum Keown\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Callum_Keown\"><\/span>Callum Keown<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-740F-DEEB130C1964%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Guinness parent Diageo restarts plan to return $6.4 billion to shareholders amid strong rebound &#8221; The Smirnoff maker was upbeat in its full-year profit guidance Guinness owner Diageo said it would resume plans to return \u00a34.5 billion ($6.36 billion) to shareholders, as its recovery from the COVID-19 pandemic continues to gather pace. The world\u2019s&#8230;<\/p>\n","protected":false},"author":1,"featured_media":247664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-247663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/247663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=247663"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/247663\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/247664"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=247663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=247663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=247663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}