The chart below shows how DEO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DEO sees a +6.10% change in stock price 10 days leading up to the earnings, and a +6.07% change 10 days following the report. On the earnings day itself, the stock moves by +0.88%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Diageo saw resilient growth in Africa, Asia-Pacific, and Europe regions, with organic net sales excluding Latin America and the Caribbean growing by 1.8%.
Diageo made progress against strategic priorities, gaining or holding share in over 75% of net sales value and measured markets, including in the U.S.
The company took actions to improve near-term execution, including enhancing inventory positions in Latin America and the Caribbean and implementing significant transformations in key markets like the U.S.
Diageo delivered record productivity savings of nearly $700 million and generated $2.6 billion in free cash flow while continuing to invest for long-term growth.
Negative
Organic net sales declined 0.6% in fiscal 2024, with a major contributor being the significantly weaker performance in the Latin America and Caribbean region.
North America experienced a decline in net sales due to a cautious consumer environment, retailer inventory adjustments, and the impact of lapping inventory replenishment from the previous year.
Despite strategic initiatives, the company continues to face challenges in the consumer environment, which are expected to persist into fiscal 25, indicating a prolonged period of difficulty.