Owner of Johnnie Walker to return £2bn to investors
Diageo has joined other consumer-product companies in adopting shareholder-friendly measures as activist investors take a growing interest in the sector
London — Diageo plans to buy back up to £2bn of stock as earnings shift into higher gear at the world’s largest distiller. The latest move to return cash to shareholders follows a buyback of £1.5bon worth of stock in the year to end-June. The move comes as the owner of Johnnie Walker whisky reported sales and earnings slightly above expectations for the period. The shares rose 0.4% in early London trading. The "full-year results confirm that the business continues to be run hard on both costs and top line", Jefferies analysts led by Ed Mundy wrote in a note to investors. Diageo is "a business in change". Diageo had said that the benefits from productivity initiatives would keep coming in the second half. The company has joined other consumer-product companies, such as Unilever and Nestlé, in adopting shareholder-friendly measures as activist investors take a growing interest in the sector. While looking at "‘bolt-on acquisitions" and making other investments in the business, Diageo ...
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