Added to YB: 2026-03-19
Pitch date: 2026-03-17
DEO [bullish]
Diageo plc
Author Info
No bio for this author
Company Info
Diageo plc, together with its subsidiaries, engages in the production, marketing, and distribution of alcoholic beverages in North America, Europe, the Asia Pacific, Latin America and Caribbean, and Africa.
Market Cap
GBP 42.9B
Pitch Price
N/A
Price Target
N/A
Dividend
5.37%
EV/EBITDA
10.32
P/E
17.80
EV/Sales
3.38
Sector
Beverages
Category
growth
Diageo's Free Cash Flow: A Bridge Built on Certainty
DEO (added to position): FCF bridge from $2.7B to $3.6B (+30%) by FY28 driven by: 1) capex normalisation to 5.5% of sales from 8% (+$450M, 55% of bridge, high certainty), 2) Accelerate program $625M savings (+$234M after-tax, 28%, high certainty), 3) 0.5% annual gross profit growth (+$140M, 17%, moderate certainty). 83% from low-risk levers. Implies 47% total return at 6% FCF yield + 2.5% div. H1 FCF $1.5B validates trajectory.
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