The ( ) share price is up almost 10% since 6 September. Ring the village church bells! To be fair, it’s about time the stock started bouncing back. All it seems to have done is trend downwards for the past two years.
And even after this jump, it remains 35% below the 4,036p level recorded at the beginning of 2022. What’s caused this sudden spike? A brief update Diageo’s annual shareholder meeting took place yesterday (26 September). Ahead of this, the spirits giant put out a brief statement saying that trading was going as expected so far in FY25.
Given that Diageo’s new financial year only started in July, I’d have been worried if it said that wasn’t the case. CEO Debra Crew commented: “ .” These strategic initiatives include restructuring its Nigerian business model and improving its sales and distribution channels in the US.
However, Crew also warned of “ ” consumers and a “ ” environment for Diageo and the spirits industry. So the prospect of sales weakening in the months ahead cannot be ruled out. Luxury brand rally The stock rose 4.
6% yesterday. But it probably wasn’t this news that was responsible. Instead, it seems to have been lifted by the in European luxury stocks fuelled by China’s economic stimulus package.
Many luxury companies rely heavily on Chinese consumer spending. Last year, Diageo’s net sales in Greater China increased 12%, primarily driven by strong growth in Chinese white spirits. It also owns a 34% stake in the Moët Henn.
