Diageo: increases full-year earnings; ups margin target.
(CercleFinance.com) - British spirits company Diageo reported a 15 percent rise in full-year net sales on Thursday, and said operating profit rose 25%.
The maker of Johnnie Walker whisky and Smirnoff vodka said organic sales growth reached 4 percent in the year ended 30 June.
The company said it continues to expect mid-single digit organic net sales growth and raised its margin improvement objective over the three years ending 30 June 2019 from 100 basis points to 175 basis points.
The London-based firm also raised its full year dividend 5 per cent to 62.2 pence and started a new 1.5 billion pounds share buyback program.
Diageo shares jumped 7.1 percent at 2,434.5 pence on the news.
Diageo trades on a 2017 PE of 20.9x, which is more expensive than its closest peer Pernod Ricard on 19.8x, according to analysts at Liberum.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The maker of Johnnie Walker whisky and Smirnoff vodka said organic sales growth reached 4 percent in the year ended 30 June.
The company said it continues to expect mid-single digit organic net sales growth and raised its margin improvement objective over the three years ending 30 June 2019 from 100 basis points to 175 basis points.
The London-based firm also raised its full year dividend 5 per cent to 62.2 pence and started a new 1.5 billion pounds share buyback program.
Diageo shares jumped 7.1 percent at 2,434.5 pence on the news.
Diageo trades on a 2017 PE of 20.9x, which is more expensive than its closest peer Pernod Ricard on 19.8x, according to analysts at Liberum.
Copyright (c) 2017 CercleFinance.com. All rights reserved.