The Lemon Fool

At the Annual General Meeting of Diageo plc held on Thursday, 28 September 2023 (the "AGM"), all resolutions contained in the Notice of Annual General Meeting 2023 (the "Notice") were passed.

The results of the poll held at the AGM are as follows:

Diageo, a global leader in beverage alcohol, yesterday launched and priced a $1.7 billion SEC-registered bond offering, consisting of $800 million 5.375% fixed rate notes due 2026 and $900 million 5.625% fixed rate notes due 2033.

The issuer of the bonds is Diageo Capital plc, with payment of principal and interest fully and unconditionally guaranteed by Diageo plc. Proceeds from this issuance will be used for general corporate purposes. The bond offering is scheduled to settle on 05 October 2023.

BofA Securities, Deutsche Bank Securities, RBC Capital Markets and Standard Chartered Bank acted as joint active book-running managers on this offering.

As announced on 1 August 2023 with its Preliminary Results for the financial year ended 30 June 2023, in line with reporting requirements the functional currency of Diageo plc has changed from sterling to US dollar starting 1 July 2023 - with this change being applied prospectively. This is because the group's share of net sales and expenses in the US and other countries whose currencies correlate closely with the US dollar has been increasing over the years, and that trend is expected to continue in line with the group's strategic focus.

Diageo has also decided to change its presentation currency from sterling to US dollar with effect from 1 July 2023, applied retrospectively, as it believes that this change will provide better alignment of the reporting of performance with its business exposures.

idpickering wrote:Diageo plc publishes re-presented US Dollar financial information.

As announced on 1 August 2023 with its Preliminary Results for the financial year ended 30 June 2023, in line with reporting requirements the functional currency of Diageo plc has changed from sterling to US dollar starting 1 July 2023 - with this change being applied prospectively. This is because the group's share of net sales and expenses in the US and other countries whose currencies correlate closely with the US dollar has been increasing over the years, and that trend is expected to continue in line with the group's strategic focus.

Diageo has also decided to change its presentation currency from sterling to US dollar with effect from 1 July 2023, applied retrospectively, as it believes that this change will provide better alignment of the reporting of performance with its business exposures.

https://www.investegate.co.uk/announcem ... ls/7803751

Ian.

BullDog wrote:
I'm considering buying some DGE. The yield is a bit low but the consistent dividend increases and the shares near a year low are tempting me.

monabri wrote:

BullDog wrote:
I'm considering buying some DGE. The yield is a bit low but the consistent dividend increases and the shares near a year low are tempting me.

When one looks at the P/E of Brown-Forman it is verging on 2x that of DGE.



https://www.brown-forman.com/

monabri wrote:

BullDog wrote:
I'm considering buying some DGE. The yield is a bit low but the consistent dividend increases and the shares near a year low are tempting me.

When one looks at the P/E of Brown-Forman it is verging on 2x that of DGE.

https://www.brown-forman.com/

simoan wrote:

monabri wrote:
When one looks at the P/E of Brown-Forman it is verging on 2x that of DGE.

https://www.brown-forman.com/

This is a bit of an exaggeration. The forecast PERs are 18x for Diageo and 28x for Brown Forman. However, P/E alone is a fairly useless measure. For FY24, BF.B is forecast to grow earnings 24% vs a 12% fall in earnings for DGE.

The standard way to compare company valuations in the same industry is using EV/EBITDA. On that basis, DGE looks cheap at 15x compared to 23x for BF.B.

monabri wrote:

simoan wrote:This is a bit of an exaggeration. The forecast PERs are 18x for Diageo and 28x for Brown Forman. However, P/E alone is a fairly useless measure. For FY24, BF.B is forecast to grow earnings 24% vs a 12% fall in earnings for DGE.

The standard way to compare company valuations in the same industry is using EV/EBITDA. On that basis, DGE looks cheap at 15x compared to 23x for BF.B.

I was working off current ratios.

(If forecast free cash flows are "pie in the sky" , then isn't everything else (earnings) likewise when it comes to 'forecast' - a forecast being a best guess?)

viewtopic.php?p=619019#p619019

tjh290633 wrote:I think that Diageo are doing what AstraZeneca did, changing their accounting currency to one which reflects the majority of their income. The dividends still come in GBP, and are declared as such.

TJH

ADrunkenMarcus wrote:Today marked 25 years since I inherited a small number of Diageo shares. I was then far too young to hold them in my own name.

Since then, the share price has risen from 553p to 3095p - up about 460 percent. Dividends paid total just over 200 percent of the book cost. The share price has compounded a little over 7 percent a year and the dividend a little over 6 percent a year. Slow but steady and a very satisfying result. The share price had topped 4000p in recent years, at which point the return looked even healthier!

Best wishes


Mark.

Diageo plc (Diageo) today announces the commencement of its new share buy-back programme, as announced in Diageo's preliminary results for the fiscal year ended 30 June 2023. This share buy-back programme will return up to $1.0 billion of capital to shareholders and is to be completed before the end of fiscal 24.

Diageo is announcing today that it has entered into a non-discretionary agreement with Merrill Lynch International to enable the company to buy-back shares with an aggregate value of up to $1.0 billion (net of any fees payable to or by Merrill Lynch International under the terms of the agreement). This agreement will commence on 12 October 2023 and will end no later than 26 June 2024. The purpose of the new share buy-back programme is to reduce the share capital of Diageo plc. All shares repurchased under this agreement will be cancelled.

The launch of this new programme follows the successful completion of Diageo's additional return of capital programme during the second half of fiscal 23 that ended on 2 June 2023, in which £0.5 billion of capital was returned to shareholders.

monabri wrote:I can't claim anything like that return!

monabri wrote:A snippet from today's Investors Chronicle

https://app.investorschronicle.co.uk/bl ... index.html

"In an IC Interviews podcast with our funds editor Dave Baxter due to air later this month, Train cites the example of Diageo, 45 per cent of whose shareholders are now US-based. He thinks this may put the business on more of a growth footing in the future. That kind of shift risks disappointing income investors but could aid the company’s long-term fortunes."

Interesting, almost half the business is owned by US based investors. I don't think many folk bought for the "yield on offer" but were hoping for a decent long term total return.

monabri wrote:Interesting, almost half the business is owned by US based investors. I don't think many folk bought for the "yield on offer" but were hoping for a decent long term total return.

idpickering wrote:Diageo launches and prices $1.7 billion USD bonds.

Diageo, a global leader in beverage alcohol, yesterday launched and priced a $1.7 billion SEC-registered bond offering, consisting of $800 million 5.375% fixed rate notes due 2026 and $900 million 5.625% fixed rate notes due 2033.

The issuer of the bonds is Diageo Capital plc, with payment of principal and interest fully and unconditionally guaranteed by Diageo plc. Proceeds from this issuance will be used for general corporate purposes. The bond offering is scheduled to settle on 05 October 2023.

BofA Securities, Deutsche Bank Securities, RBC Capital Markets and Standard Chartered Bank acted as joint active book-running managers on this offering.

https://www.investegate.co.uk/announcem ... ds/7792349

Ian (No holding).