|Bid||138.57 x 800|
|Ask||138.66 x 1000|
|Day's range||137.35 - 139.04|
|52-week range||100.52 - 176.22|
|Beta (5Y monthly)||0.33|
|PE ratio (TTM)||21.65|
|Forward dividend & yield||2.72 (1.96%)|
|Ex-dividend date||27 Feb 2020|
|1y target est||147.67|
Diageo, the world's biggest spirits company and producer of brands including Guinness and Smirnoff Vodka, said Wednesday (February 26) that the spread of coronavirus in greater China and the Asia Pacific could knock up to $260 million off its 2020 profits. The company cited widespread closures of bars and restaurants in China, and a substantial reduction in eating out. It also highlighted a hit to consumption in several other Asian countries, especially South Korea, Japan and Thailand. Trading has been significantly disrupted since the end of January, and Diageo expects this to last at least into March. After that it anticipates a gradual improvement, with consumption returning to normal levels towards the end of the financial year. Shares in Diageo were down almost 2% by early afternoon.
Constellation Brands CEO Bill Newlands joins Yahoo Finance to discuss the state of the beer industry amidst the COVID-19 pandemic.
Diageo (DEO) withdraws FY20 view, cuts expenses and suspends share repurchase plan in the wake of the uncertain COVID-19 impacts. Also, its top line remains soft due to lockdown in many countries.
(Bloomberg) -- It may be tough to find enough Corona beer for Cinco de Mayo house parties - if that will even be a thing in 2020.Mexico’s Grupo Modelo, the maker of Corona beer that’s owned by Anheuser-Bush InBev, said late Thursday that it had started shutting down production at its breweries in Mexico and would stop sales entirely by Sunday in order to comply with the government’s coronavirus emergency protocol, which didn’t identify beer production as essential.On Friday, President Andres Manuel Lopez Obrador said his government was reviewing which types of factories would be considered essential, and said the final decision would be made by health officials. Modelo said it would guarantee beer supply with 75% of its workers operating from their homes, if the government gives it the go-ahead to keep running.Mexico declared a national health emergency on Monday, but its March 31 notice calling for a halt to non-essential activities for a month has sown uncertainty. The government’s ruling on whether it may allow an exception for beer and alcohol production could weigh on global brewers and spirits producers, Credit Suisse analyst Kaumil Gajrawala said in an April 2 note.Constellation Brands sank this week on concerns it would have to shutter its breweries but on Friday the company suggested Cinco de Mayo parties in the U.S. would be safe.Chief executive officer Bill Newlands said its Mexico plants are still operating and that the company had 70 days of inventory that will guarantee no disruption with retailers. “We expect to have no disruption in our ability to produce product and deliver it to retail,” Newlands said in a conference call with analysts.Constellation makes Corona and Modelo brands for export to the United States, while Grupo Modelo produces the beers for the rest of the world. Heineken, which makes Mexican beers Dos Equis and Tecate, told Credit Suisse it was preparing to suspend production, but that it was making a case to the government that barley growers would be hit.Heineken shares shed around 7% the past three days, Constellation was down nearly 8% and AB InBev slipped about 2%.Citigroup analyst Simon Hales said in a note that Mexico’s market is ABInBev’s 4th biggest and Heineken’s largest global market. Bloomberg Intelligence analyst Kenneth Shea said Constellation sources nearly all of its beer from Mexico.“A potential extended beer plant shutdown in Mexico would be devastating to the company, as its beer sales account for about two-thirds of it sales,” Shea said.Since Wednesday, videos circulated in social media of lines of cars lined up at drive thru beer stores in Mexico’s north. Another showed lines of shoppers with carts filled to the brim with cases of Corona beer. There were rumors that states would impose dry laws, as is done during elections in Mexico. President Lopez Obrador’s home state of Tabasco banned alcohol sales this week.Lopez Obrador said on Friday that local governments could make their own decisions, but he pointed out that “panic beer buying” was creating crowds that could risk further contagion.Tequila makers such as Jose Cuervo maker Becle SAB and Don Julio owner Diageo Plc look to be safe after the state of Jalisco deemed their production essential, citing farm workers that depend on them.Meanwhile, beer companies are lobbying the Mexican government. Modelo said 800,000 small stores depend on beer sales for 40% of revenues, while 15,000 farm families benefit from barley crops.Lopez Obrador angered the country’s business leaders late last month after he backed a local referendum to deny permits to a partly-built Constellation plant in the Mexican border town of Mexicali. The president met with company executives this week and Newlands said the company had held productive talks that will lead to a favorable solution, but he declined to share details.(Updates with Constellation CEO comments in paragraph 6 and 15 and analyst comment in paragraphs 9-10)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Diageo (DEO) is among the companies that have warned of impacts from the coronavirus on its results. However, its sound fundamentals may help it rebound when conditions improve.
INVESTOR ALERT: Tostrud Law Group, PC Announces Investigation of Diageo plc (DEO) on Behalf of Investors
Constellation Brands (STZ) clarifies to investors that its fiscal 2020 sales remain unaffected by the coronavirus outbreak in China due to less international exposure.
(Bloomberg) -- U.S. stocks fell for a fifth day, the longest losing streak since August, while Treasury 10-year note yields dropped to another record low as investors weathered a barrage of reports on the widening coronavirus outbreak.The S&P 500 closed down 0.4%, after plunging more than 3% each of the previous two days. The Dow Jones Industrial Average dropped 122 points after tumbling almost 2,000 points on Monday and Tuesday, while the Nasdaq Composite rose. European shares pared losses to close mostly higher, while Asian equities finished in the red. Oil dropped below $50 a barrel and gold edged higher.“No one has any idea the depth and duration of the coronavirus’ negative impact on the global economy and corporate earnings,” said Alec Young, managing director of global markets research at FTSE Russell.President Donald Trump and federal health officials plan to brief the U.S. public Wednesday on efforts to prevent the spread of the coronavirus. Health officials in Nassau County on New York’s Long Island are monitoring 83 people who have visited mainland China or may have come in contact with the virus. Earlier, German and American officials warned of a pandemic. Diageo Plc and Danone SA said that the outbreak will hit sales in China. The first cases in Greece and in South America emerged, while Spain locked down a seaside resort hotel with about 1,000 guests and workers inside.Risk assets are struggling to rebound as coronavirus cases steadily climb outside the epicenter in China. South Korea said its national total rose to more than 1,000, while American health officials Tuesday warned that they expect the epidemic to spread in the U.S.Traders may be looking out for further signs of policy accommodation after American central bankers said they are closely monitoring the spreading virus, though it’s “still too soon” to say whether it will change the outlook.“People are taking a step back and reviewing the data and seeing how much this coronavirus is progressing,” said Michael Reynolds, investment strategy officer at Glenmede Trust Co.Elsewhere, a gauge of high-yield credit risk for European issuers rose for a fifth day. Industrial metals and minerals mostly dropped, including copper and iron ore. Bitcoin slumped for a third day.These are some key events coming up:Earnings keep rolling in from companies including: Baidu Inc., Best Buy Co. Inc., Occidental Petroleum Corp. and Dell Technologies Inc. on Thursday; and London Stock Exchange Group Plc on Friday.The Bank of Korea announces its policy decision on Thursday, with rising risks of an interest-rate cut.U.S. jobless claims, GDP and durable goods data are out Thursday.Japan industrial production, jobs, and retail sales figures are due on Friday.These are major moves in markets: To contact the reporters on this story: Claire Ballentine in New York at firstname.lastname@example.org;Vildana Hajric in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Dave LiedtkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Diageo (DEO) relocates its North America headquarters to Lower Manhattan. The move adds 350 new job opportunities for the city, in addition to the 150 jobs already on payroll.
Diageo's (DEO) first-half fiscal 2020 results reflect gains from strong price/mix and higher operating profits. It cut the top-line view for fiscal 2020 on uncertainty in global trade conditions.