Diageo: Oddo confirms buy rating

(CercleFinance.com) - Oddo points out that H2 sales came in at 4,552 million pounds, 1.
7% below consensus expectations, representing annual sales of 11,752 million pounds.

The group recorded an organic decline in sales of 8.2% over the year, including -22.6% in H2 (compared to -10.5% for Campari and about -28% (e) for Rémy Cointreau over the same period).

Oddo says that North America stood out, thanks to its very good resilience in H2 (-1.1% in organic terms) and for the year (+2.4%), while the other regions posted greater organic declines than expected.

Underlying EBIT (excluding exceptional items) was 993 million pounds in H2, in line (+0.6%) with expectations, down 42% organically (-40.4% as reported). Reported EBIT was however heavily impacted by asset impairments of about 1.3 billion pounds, particularly in India, but also in Korea and some African markets, the broker added.

Oddo confirms its buy rating on the share, with a target price of 3040p.


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