Diageo shares up 9%
A positive market outlook for their US and European businesses provides a push for the shares.

Diageo (NYSE: DEO) appears after posting a positive business update ahead of the company's annual general meeting. The company says it had a good start into the 21st FY, with sequential improvement in performance across all regions, fueled by strong execution, robust demand in the retail channel, and the gradual reopening of the retail channel in most markets. "Our US business is performing well and is exceeding our expectations thanks to robust consumer demand, and the spirits category continues to win share of the overall beverage alcohol market. Increased retailer confidence is leading to some stockpiling in the retail channel. The Horeca channel is now open in all states, with some capacity restrictions ". "In Europe, retail demand remains robust and the retail channel has largely reopened with the easing of lockdowns in most countries, although the risk of additional restrictions remains where infection rates worsen. In China the Horeca channel continues to recover, although major banqueting events are slower to return. The Horeca channel has also started reopening in Africa, India, and Latin America and the Caribbean, but we expect the recovery in these markets to be slower still severely affected ". Diageo continues to anticipate sequential improvements in organic net sales and operating profit compared to the second half of FY20. Compared to the first half of the 20th FY, the company expects lower organic net sales and a dilution of margins. Diageo shares were up 8.59% premarket to $ 140.52.





