Últimas noticias sobre Diageo (NYSE:DEO) Bolsa

Diageo

Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company's product and geographic portfolio. The firm has also shed noncore brands over the years, including the majority of its wine assets in 2015.

Nearly six months into President Donald Trump's second term, the market has picked its winners—and it's not on ESG, the strategy built around environmental,<a href="https://www.benzinga.com/markets/esg"> social and governance principles.</a>
As deregulation gains steam and culture wars escalate, a group of so-called &#8220;sin stocks&#8221; tied to guns, booze, tobacco, and gambling is sharply beating clean investing strategies.
<h3 class="wp-block-heading">Sin Stocks Are Smoking ESG—and Trump Might Be The Reason</h3>
Since Trump's inauguration on Jan. 20, 2025, the USA Mutuals Vice Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VICEX#NASDAQ">VICEX</a>) — a portfolio built around industries typically shunned by ethical investors — has jumped 16.4%. By contrast:
<ul class="wp-block-list">
<li>The Vanguard ESG U.S. Stock ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESGV#NYSE">ESGV</a>) is up just 3.5%.</li>
<li>The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) gained 4.2%.</li>
<li>The Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 6%. </li>
</ul>
This shift reflects a broader investor reallocation toward industries that benefit from Trump's deregulatory, America-first agenda—and away from sectors screened for ESG compliance.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="529" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/07105031/image-66-1024x529.png" alt="" class="wp-image-975026" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/07105031/image-66-1024x529.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/07105031/image-66-300x155.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/07105031/image-66-768x397.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/07105031/image-66-1536x794.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/07/07105031/image-66-2048x1059.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">What's Driving Sin Stocks Higher?</h2>
The USA Mutuals Vice Fund, launched in 2002, invests at least 80% of its assets in companies tied to alcohol, tobacco, gambling, and defense.
It concentrates a minimum of 25% in these four "vice industries," which the fund defines as sectors often subject to social disapproval or regulatory risk. 
No single industry makes up more than 80% of the portfolio. The fund also maintains global exposure, investing at least 40% of assets in non-U.S. companies across a minimum of three countries.
 Its top holdings as of March 31, 2025 have delivered eye-catching returns in 2025:
<ul class="wp-block-list">
<li>BAE Systems plc (OTCPK: BAESY): +79.3%</li>
<li>Philip Morris International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PM#NYSE">PM</a>): +51.8%</li>
<li>British American Tobacco p.l.c. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BTI#NYSE">BTI</a>): +46.9%</li>
<li>Anheuser-Busch InBev SA/NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>): +38.8%</li>
<li>RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>): +28.0%</li>
<li>Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>): +28.5%</li>
<li>Heineken N.V. (OTCPK: HEINY): +25.9%</li>
<li>Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>): +9.4%</li>
<li>Diageo plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>): -17.1% (the lone laggard). </li>
</ul>
In particular, a portfolio of defense contractors—tracked by the iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>)—has surged 25% year-to-date, fueled by rising geopolitical tensions and further escalated by the recent Israel–Iran war.
&#8220;The Vice Fund remains committed to its core belief that certain stocks are undervalued because certain factions of society deem them morally questionable,&#8221; said portfolio manager Paul Strehle in the fund's latest quarterly report.
&#8220;Our core holdings remain military defense, casino, alcohol, and tobacco stocks because they typically have an inelastic customer base that is unlikely to be swayed by whether the product price rises or falls,&#8221; he added. 
<h2 class="wp-block-heading">ESG Stocks Struggle Despite Big Tech Exposure</h2>
Despite the Vanguard ESG U.S. Stock ETF including several of the market's strongest tech names, it hasn't kept up with vice stocks. 
Top 10 ESGV Holdings and 2025 YTD Returns:
<ul class="wp-block-list">
<li>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): +18.1%</li>
<li>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>): +18.6%</li>
<li>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>): -15.1%</li>
<li>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>): +2.0%</li>
<li>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): +24.3%</li>
<li>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>): +20.0%</li>
<li>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>): -6.1%</li>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>): -27.4%</li>
<li>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>): -6.1%</li>
<li>JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>): +24.8%</li>
</ul>
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Guns, Booze, And Gambling Stocks Are Crushing ESG In Trump's America

Actor Ryan Reynolds may be best known for his role in movies like the "Deadpool" franchise, which brings in billions of dollars at <a href="https://www.benzinga.com/general/entertainment/24/08/40319102/disneys-deadpool-wolverine-hits-1b-d23-unveils-new-sequels-theme-park-expansions-fortnite-c">the box office.</a>
Outside of movies, Reynolds is also becoming increasingly known for his investing and entrepreneurship thanks to a series of billion-dollar companies.
A thread on X, formerly known as Twitter, about&nbsp;<a href="https://www.benzinga.com/topic/ryan-reynolds" target="_blank" rel="noreferrer noopener">Ryan Reynolds</a>&nbsp;highlights that he may be the &#8220;GOD of billion dollar brands.&#8221;
The&nbsp;<a href="https://twitter.com/timjcarden/status/1772277477424971807?s=20" target="_blank" rel="noreferrer noopener">thread&nbsp;</a>by Tim Carden has over five million views and points to several commonalities among the companies that are owned or were sold by Reynolds.
Carden said Reynolds looks for opportunities and when he makes an investment or deal he actively markets the business himself and oftentimes &#8220;becomes the face of the brand.&#8221; Reynolds also helps in the creative process of making ads about products.
&#8220;When Ryan sees a viable opportunity, he takes it,&#8221; Carden said.
An example is&nbsp;Aviation Gin,&nbsp;which Reynolds tasted and fell in love. His love for the brand led to an investment and the actor became the face of the brand. Aviation Gin was later sold to alcohol giant&nbsp;Diageo PLC&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>), netting a nice return for the actor.
&#8220;While many celebrities just pump money and sit back, Ryan is in the driver&#8217;s seat.&#8221;
Another example highlighted by Carden is the marketing company&nbsp;Maximum Effort, which has helped with ads for the Deadpool movies, which the company is co-producing with&nbsp;Walt Disney Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>)
&#8220;Ryan knows that as an actor, his strengths are in front of a camera — and he plays to his strengths.&#8221;
Maximum Effort was bought out by connected TV ad platform company MNTN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MNTN#NYSE">MNTN</a>), but was recently bought back by the Maximum Effort TV and film studio co-owned by Reynolds. The actor <a href="https://www.hollywoodreporter.com/business/business-news/maximum-effort-marketing-ryan-reynolds-george-dewey-mntn-deal-1236155837/">remains </a>the Chief Creative Officer for MNTN and the connected ad platform has a partnership with Reynolds' marketing firm.
Read Also: <a href="https://www.benzinga.com/general/entertainment/24/04/38530584/ryan-reynolds-rob-mcelhenney-buy-another-soccer-team-can-dynamic-duo-turn-around-mexico-clu">Ryan Reynolds, Rob McElhenney Buy Another Soccer Team: Can Dynamic Duo Turn Around Mexico Club?</a>
Why It&#8217;s Important: Carden said Reynolds knows how to perfectly capitalize on trends and use his talents after recognizing the trend.
Reynolds<a href="https://www.benzinga.com/general/entertainment/24/01/36875148/formula-one-rejects-andretti-general-motors-team-bid-what-this-could-mean-for-us-growth-esp" target="_blank" rel="noreferrer noopener">&nbsp;invested in&nbsp;</a>a&nbsp;Liberty Media Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FWONA#NASDAQ">FWONA</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FWONK#NASDAQ">FWONK</a>)&nbsp;Formula 1&nbsp;motor racing team, which comes as the valuation of teams in the sport is rising.
The actor also owns a soccer team and was&nbsp;<a href="https://www.benzinga.com/general/entertainment/23/05/32174242/ryan-reynolds-senators-bid-may-be-dropped-like-its-hot-as-snoop-steps-up-in-next-episode-of" target="_blank" rel="noreferrer noopener">among the bidders</a>&nbsp;for the National Hockey League&#8217;s Ottawa Senators.
&#8220;Ryan Reynolds is more than just an actor. He is also a savvy serial businessman who knows a thing or two about building a billion-dollar brand. He hunts for opportunities, gets personally involved in marketing the business, injects his personal brand, and is always on the move,&#8221; Carden said.
Along with Aviation Gin getting bought out, another Reynolds investment <a href="https://www.benzinga.com/m-a/23/03/31362824/ryan-reynolds-mobile-company-gets-1-35b-buyout-from-t-mobile-will-he-purchase-an-nhl-team-with-that">saw a buyout</a>.&nbsp;Mint Mobile&nbsp;was purchased by&nbsp;T-Mobile US&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>).
Like Aviation Gin, Reynolds starred in ads for the company after he invested.
The ownership of Maximum Effort helps Reynolds quickly make ads for companies he invests in and for movies he stars in. The combination leads to Reynolds easily recognizable as an investor or the face of a product.
This article was previously published by Benzinga and has been updated.
Photo: Fred Duval/Shutterstock

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Why Ryan Reynolds Is Becoming The 'God Of Billion Dollar Brands'

The most oversold stocks in the consumer staples sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the <a href="https://www.benzinga.com/topic/rsi">RSI is below 30</a>, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>.
Here's the latest list of major oversold players in this sector, having an RSI near or below 30.
<h3 class="wp-block-heading">Constellation Brands Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STZ#NYSE">STZ</a>)</h3>
<ul class="wp-block-list">
<li>On June 2, Constellation Brands announced delivery of notices of redemption for 4.75% senior notes due 2025 and 5.00% senior notes due 2026. The company's stock fell around 9% over the past month and has a 52-week low of $160.46.</li>
<li>RSI Value: 26.8</li>
<li>STZ Price Action: Shares of Constellation fell 3.6% to close at $170.60 on Thursday.</li>
<li>Edge Stock Ratings: 18.63 Momentum score with Value at 14.10. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://www.benzinga.com/quote/STZ"><img loading="lazy" decoding="async" width="441" height="183" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/06071110/image-87.png" alt="" class="wp-image-941078" style="width:325px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/06071110/image-87.png 441w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/06071110/image-87-300x124.png 300w" sizes="(max-width: 441px) 100vw, 441px" /></a></figure>
<h3 class="wp-block-heading">Coca-Cola Consolidated Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COKE#NASDAQ">COKE</a>)</h3>
<ul class="wp-block-list">
<li>On May 15, Coca-Cola Consolidated announced a $90 million investment in Columbus facility. &#8220;The investment we&#8217;ve made here in Columbus is evidence of our focus on growth in Columbus,&#8221; said Sam Meiner, VP, Mid-West Market Unit at Coca-Cola Consolidated. &#8220;This commitment to our teammates and production capabilities is a long-term dedication to improving how we serve the world&#8217;s best brands and flavors to our communities and the people of Ohio.&#8221; The company's stock fell around 10% over the past month and <a href="https://www.benzinga.com/quote/COKE">has a 52-week low</a> of $96.60.</li>
<li>RSI Value: 25.8</li>
<li>COKE Price Action: Shares of Coca-Cola Consolidated fell 1.4% to close at $106.17 on Thursday.</li>
<li>Benzinga Pro&#8217;s charting tool helped identify the trend in <a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0606">COKE stock</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0606"><img loading="lazy" decoding="async" width="927" height="851" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/06071215/image-88.png" alt="" class="wp-image-941079" style="width:652px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/06071215/image-88.png 927w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/06071215/image-88-300x275.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/06071215/image-88-768x705.png 768w" sizes="(max-width: 927px) 100vw, 927px" /></a></figure>
<h3 class="wp-block-heading">Diageo PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>)</h3>
<ul class="wp-block-list">
<li>On May 19, Diageo reported a third-quarter fiscal 2025 trading update that showed steady growth in organic net sales and progress on its operational transformation efforts. The maker of Smirnoff and Guinness posted $4.4 billion in net sales for the quarter ended March 31, marking a 2.9% increase year-over-year. Organic net sales rose 5.9%, driven by stronger pricing and shipment volumes. The company's stock fell around 8% over the past month and has a 52-week <a href="https://www.benzinga.com/quote/DEO">low of $100.72.</a></li>
<li>RSI Value: 29</li>
<li>DEO Ltd Price Action: Shares of Diageo fell 5.1% to close at $105.20 on Thursday.</li>
<li>Benzinga Pro&#8217;s signals feature notified of a potential breakout in <a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0606">DEO shares</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0606"><img loading="lazy" decoding="async" width="862" height="832" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/06071542/image-89.png" alt="" class="wp-image-941080" style="width:661px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/06071542/image-89.png 862w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/06071542/image-89-300x290.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/06071542/image-89-768x741.png 768w" sizes="(max-width: 862px) 100vw, 862px" /></a></figure>
Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and s<a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">ee how they compare.</a>
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Diageo plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) shares are trading lower on Monday after the company reported <a target="_blank" href="https://www.diageo.com/en/news-and-media/press-releases/2025/diageo-issues-fiscal-25-q3-trading-statement" rel="noreferrer noopener">a third-quarter fiscal 2025</a> trading update that showed steady growth in organic net sales and progress on its operational transformation efforts.
The maker of Smirnoff and Guinness posted $4.4 billion in net sales for the quarter ended March 31, marking a 2.9% increase year-over-year. Organic net sales rose 5.9%, driven by stronger pricing and shipment volumes.
The company&#8217;s performance in the third quarter benefited from favorable phasing, which is estimated to have contributed approximately 4% to the group&#8217;s organic net sales growth. This positive impact was primarily observed in North America, with a lesser contribution from the Latin America and Caribbean region. It is anticipated that this favorable phasing will reverse in the fourth quarter.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/mid-cap/25/05/45491961/why-is-txnm-energy-stock-soaring-on-monday" rel="noreferrer noopener">Why Is TXNM Energy Stock Soaring On Monday?</a>
Diageo reported a 6% organic net sales growth in North America, primarily driven by strong shipment growth in U.S. Spirits. While U.S. Spirits experienced strong shipment growth, Diageo noted that the overall U.S. Spirits category was softer.
U.S. Spirits organic net sales were up 7%. The gain was supported by restocking and import pull-forwards in anticipation of new tariffs.
Latin America and the Caribbean delivered a 29% organic sales jump, rebounding from last year&#8217;s inventory correction and buoyed by improved consumer sentiment in Brazil and Mexico.
In contrast, Europe saw flat growth as solid momentum in Guinness was offset by continued softness in spirits. Asia Pacific posted modest gains, mainly due to easier year-ago comparisons, while Africa recorded 10% organic growth, fueled by strong demand in East Africa and Ghana.
Chief Executive Debra Crew said the company is &#8220;on track&#8221; to meet its fiscal 2025 outlook despite macroeconomic uncertainty and new tariffs on U.K. and EU imports into the U.S. Diageo expects the total impact of these tariffs to reach approximately $150 million annually, though it aims to mitigate roughly half of that through cost controls and pricing strategies.
As part of its newly launched &#8220;Accelerate&#8221; initiative, Diageo plans to generate approximately $3 billion in free cash flow annually starting in fiscal 2026. The program also includes a $500 million cost reduction plan over three years and targets a reduction in leverage to 2.5–3.0x net debt to EBITDA by fiscal 2028.
Diageo reaffirmed its fiscal 2025 guidance for the full year, expecting a sequential improvement in organic net sales growth during the second half. However, it anticipates a slight decline in organic operating profit year-over-year, in line with the first half, due in part to ongoing tariff pressures.
Capital expenditures for the year are expected to be near the upper end of the $1.3 to $1.5 billion range, and the company projects a slightly lower effective interest rate than the 4.3% recorded in fiscal 2024. The full-year results will also introduce a revised tax reporting method.
Related ETFs: Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>), iShares Global Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KXI#NYSE">KXI</a>).
Price Action: DEO shares are trading lower by 1.02% to $113.88 at last check Monday.
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Smirnoff, Guinness Parent Diageo Talks About Adverse Tariffs Impact

Strong Q3 organic net sales growth. On track for full year with sequential improvement in H2
<ul>
<li>Reported net sales for the third quarter increased by 2.9% to $4.4bn, with positive organic growth partially offset by unfavourable foreign exchange and disposals.</li>
<li>Organic net sales were up 5.9% in the quarter, with organic volume up 2.8% and positive price/mix of 3.1%.</li>
<li>Performance in the quarter was supported by favourable phasing which we estimate contributed c.4% of Q3 group organic net sales growth, mainly from North America and to a lesser extent Latin America and Caribbean, and is expected to reverse in Q4.</li>
<li>All regions delivered positive price/mix except Asia Pacific where continued consumer downtrading and adverse market mix impacted net sales.</li>
<li>Full year fiscal 25 guidance for organic net sales and operating profit reiterated.</li>
<li>Launching first phase of Accelerate programme to create a more agile operating model. We expect to sustainably deliver c. $3bn free cash flow per annum from fiscal 26, increasing as performance improves. This is supported by a c.$500m cost savings programme, which will enable both reinvestment in future growth and improved operating leverage. We expect to return to well within our target leverage ratio range of 2.5 – 3.0x no later than fiscal 28 providing us with a lot more flexibility, and which will also be supported by appropriate and selective disposals over the coming years.</li>
</ul>

Diageo Delivers Q3 With $4.4B In Sales, 5.9% Organic Growth Driven By Volume And Price/Mix; Reaffirms Full-Year Guidance Despite FX And Disposals

The market rally continued into May as companies like Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) reported blowout <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45137383/microsoft-rallies-after-crushing-q3-earnings-goldman-sachs-lifts-target-to-480">Q1 earnings</a>. But while stocks reclaimed their pre-Liberation Day highs, sour sentiment and uncertainty continue to bleed into <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45139383/us-manufacturing-activity-contracts-in-april-as-tariffs-push-input-prices-toward-3-year-highs">survey data</a>.
Investors caught between the market rebound and declining sentiment may prefer to park their cash in sectors where product demand and market sentiment are less volatile, such as consumer staples.
Consumer staples stocks are resilient during downturns due to their focus on essential goods that people need regardless of economic conditions. This protects these firms from drastic revenue declines. Many also possess pricing power, allowing them to pass tariff costs to consumers without significant pushback.
Today, we'll look at five companies in the consumer staples space that offer strong dividends and high growth potential.
<h2 class="wp-block-heading">Interparfums Inc.&nbsp;</h2>
If your significant other has a favorite scent, there's a good chance Interparfums (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IPAR#NYSE">IPAR</a>) had a hand in making it. The France-based fragrance firm makes colognes and perfumes for brands like Donna Karan, Kate Spade, Coach, Guess, Montblanc, Ferragamo, and more. Interparfums reported $1.45 billion in sales over the past 12 months and currently has a market capitalization of over $3.5 billion.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfOkma81-NTsApMIrtB1h37fir3zuZonotn9P4VHmyeGtE9VkFeAKehONFUln4YuZ3eEFsDWEkpsK-glcgCjLmhdKCSYWwewM3Xgs2btvofHcoxyD_gn_NDoNkxFinGPg0vfidy?key=T5If8DzUP6CFypYMGIowJsn4" alt="" /></figure>
IPAR currently yields 2.93% with a dividend payout ratio (DPR) of 63%, meaning that 63% of profits are allocated to dividend payments. Over 60% of profits going to a dividend may sound high, but consumer staples aren't growth-oriented firms and often return substantial chunks of earnings to shareholders. IPAR recently raised its quarterly dividend payout from $0.75 per share to $0.80 and reported 64% gross margins in the most recent earnings report. These figures indicate a strong dividend and the ability to absorb short-term tariff pressures. Additionally, the daily stock chart shows evidence of a trend reversal after a 22% decline in the preceding three months. IPAR has a high Benzinga Edge Quality score of 91.01 and reports its 2025 Q1 earnings on May 5.
<h2 class="wp-block-heading">J.M. Smucker Co.&nbsp;</h2>
If you have young children, you've likely familiarized yourself with Uncrustables, the prepackaged sandwich treats sweeping elementary school cafeterias and Little League baseball diamonds. Uncrustables come from food giant J.M. Smucker Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SJM#NYSE">SJM</a>), famous for its peanut butter and jelly. It also owns popular brands like Hostess, Folgers, Cafe Bustelo, Meow Mix, and Milk-Bone.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcfrFUcx03Ik9f-jz_NciLyClXb1QDzsyELB_8T3zP7J9oXcuZ_tqnL_xfxZiMvvPC_ZsbwE6YusYAxvg3Wbnjppa2-fgAPYGMifVnETbjn_JRNMOqGLfkunUwWFAocf55mDd3NJQ?key=T5If8DzUP6CFypYMGIowJsn4" alt="" /></figure>
SJM's dividend payout rate is beyond 100% this quarter due to a one-time impairment charge that affected earnings, but this charge blurs an otherwise sturdy dividend. SJM currently yields 3.72%, and the forward DPR based on 2026 estimates is just 41%. The company is also a Dividend Aristocrat, meaning it has increased its annual payout for at least 25 consecutive years (SJM has been raising its payout for 27 years now). SJM reported 36% gross margins in its most recent conference call, and the chart shows a potential Golden Cross forming as the 50-day moving average converges with the 200-day moving average.
<h2 class="wp-block-heading">United Breweries Co.&nbsp;</h2>
United Breweries Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCU#NYSE">CCU</a>) is a Chilean-based wine and spirits manufacturer known as Compañía Cervecerias Unidas in South America (hence the CCU stock ticker). The company operates primarily in South America, producing alcoholic and non-alcoholic beverages under its own name and through popular brands such as Heineken, Guinness, Pepsi, and Keurig. CCU doesn't need to worry about tariffs, as the company doesn't export to the United States. However, U.S. investors can still earn income from its durable dividend.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc6QuCfT64RbCmD6Za-lXtzz7EKsSt2aKYpZnAV8nXs3c5AlZkMZoVImhyJcZ6-kR-qmTpyf1Sl47cf5xxFniaipnXDTLKQDXR29mHNDQRZqteElswwRxjn0HtXy8c5BXPvXq0CFQ?key=T5If8DzUP6CFypYMGIowJsn4" alt="" /></figure>
CCU's stock has a dividend yield of 3% with an amenable 28% DPR, indicating a resilient payout. The company also has strong margins for a food and beverage maker, with 45% gross margins in its most recent earnings report. Benzinga Edge rates the stock 99.42 in Quality and 92.45 in Value, the highest figures for any company on our list today. The daily chart is also a thing of beauty, with the price firmly above the 50-day and 200-day simple moving averages (SMAs) and the Relative Strength Index (RSI) still well below the overbought threshold of 70.
<h2 class="wp-block-heading">Diageo plc ADR&nbsp;</h2>
It's been a rough road lately for the English alcohol behemoth Diageo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>), which counts Johnny Walker, Crown Royal, Don Julio, Ketel One, Bailey's, and Smirnoff among its most popular brands. DEO stock was a top performer following the COVID crash in 2020, going from a March 2020 low of $102 to $222 by the first week of 2022.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd6xmvco1-VofOa0YmRHYSHbswarzBdZ6C7-zRP77odB6DOHn-bGM41tVQSH23appZSVfPpFGkmmN49Mwom0xyO9bgfeb5Bs9Bv_xHhX18j5k87Hmup6xU717y4lBW4CJbxQojL?key=T5If8DzUP6CFypYMGIowJsn4" alt="" /></figure>
The stock has returned to that 2020 low, but this could finally be a turning point for the beleaguered beverage maker. The chart above shows a distinct long-term double bottom; the stock bounced off that level almost immediately. DEO shares have returned 7% over the last month, and fundamentals indicate that more gains could be ahead. The company posted gross margins of 60% in its most recent earnings release, and the stock yields 3.7% with a DPR of just 46%. Analysts rate the stock as a consensus Buy with an average price target of $180, indicating tremendous upside potential from current levels. Optimism could finally be sinking in at Diageo after a 50% haircut over the last two-plus years.
<h2 class="wp-block-heading">Strategic Education Inc.&nbsp;</h2>
Strategic Education (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STRA#NASDAQ">STRA</a>) operates private colleges and universities, such as Strayer, Capella, and Torrens, and offers online post-secondary educational programs. STRA shares saw a massive uptick during the pandemic as online education gained market share, but they dropped to multi-year lows in 2022 amidst declining revenue and shrinking margins.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdu1he7ZzwaHdzCJgxkVgpZ5vx4ZBR0A3ldQSCehzjbjpGoqoRz2WUqt3oKhnFAteEO5EUyF-lP5VXj9Pt7XrIIfGMoodp6NkBUVWNjL3gI-FikEWm-X7dNS-m80xpep1CP5C9D3g?key=T5If8DzUP6CFypYMGIowJsn4" alt="" /></figure>
STRA shares could be approaching a multi-year support level, as shown in the chart above. This fact, along with a safe dividend, makes this an attractive stock for income investors. The dividend yield is 2.94% with a 51% DPR, and the company has grown revenue for four consecutive quarters. Additionally, profit margins are back above 9% for the first time since the pandemic, with 47% gross margins, and the stock trades at just 17 times earnings.
<h2 class="wp-block-heading">Markets Are Whipsawing—Here's How to Find Trades Inside It</h2>
Massive Dow swings. Tech whiplash. Every CPI print is rattling the market. Chris Capre is going live Sunday, May 4 at 1 PM ET to break down how to time high-probability trades with his proven 0–5 day momentum system. Register <a href="https://events2.benzinga.com/chris-capre-webinar-sun-may4-2025-registration/?">HERE</a> to join the session.
Editorial content from our Expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.
Photo: Shutterstock

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Shares of consumer staple companies are trading higher following President Trump's decision to implement a 90-day pause on reciprocal tariffs for all countries except China.

<a href="https://www.bloomberg.com/news/articles/2025-03-13/trump-vows-200-tariff-on-eu-wine-escalating-trade-tensions" title="https://www.bloomberg.com/news/articles/2025-03-13/trump-vows-200-tariff-on-eu-wine-escalating-trade-tensions">https://www.bloomberg.com/news/articles/2025-03-13/trump-vows-200-tariff-on-eu-wine-escalating-trade-tensions</a>
&nbsp;

Macro Economic Events

Economics

'President Trump Floats 200% Tariff On EU Wines' -Bloomberg News

When President Trump announced a 50% tariff on Canadian aluminum and steel imports, it created a cloud of fear and <a href="https://www.benzinga.com/markets/equities/25/03/44269301/trumps-25-tariffs-on-steel-and-aluminum-imports-take-effect-eu-retaliates-us-steel-nucor-century-aluminum-and-other-domestic-stocks-cheer">uncertainty in the markets</a>. 
Stocks dropped as the 25% previously announced tariffs set to be implemented on Wednesday were anticipated to be doubled.
Trump later hinted at reconsideration after Ontario's premier suspended a surcharge on electricity exports. While domestic producers may benefit, higher costs could dent the profits of industries that rely heavily on these materials.
Also Read: <a href="https://www.benzinga.com/news/25/03/44253100/trump-slaps-50-tariff-on-canadian-steel-aluminum-threatens-auto-industry">Trump Slaps 50% Tariff On Canadian Steel &amp; Aluminum, Threatens Auto Industry</a>
This has presented a good opportunity to look into exchange-traded funds, <a href="https://www.benzinga.com/etfs">ETFs, that may gain or lose</a>:
<ul>
<li>VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>): The ETF gained 1.3% on Tuesday. Its U.S. exposure is at 53.78%, with Brazil and Australia following at 14.65% and 10.71%, respectively. SLX has the least exposure to Canada at less than 1%. The ETF carries an expense ratio of 56 basis points. Tariffs on materials imports from Canada bode well for domestic producers. SLX has exposure to United States Steel Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) and Steel Dynamics Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>).</li>
</ul>
<ul>
<li>iShares U.S. Basic Materials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYM#NYSE">IYM</a>): This fund appeals to investors seeking a conservative way to gain aluminum exposure. The ETF&#8217;s exposure is spread out to base metals stocks and other materials sectors like chemicals and forestry products. This makes it a less speculative investment. This reduces risks from an aluminum market downturn. The ETF holds stocks of aluminum leaders such as Alcoa (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>) and Reliance Steel &amp; Aluminum (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RS#NYSE">RS</a>). Both stand to gain if the tariffs are implemented.</li>
</ul>
<ul>
<li>The Invesco Building &amp; Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKB#NYSE">PKB</a>): One of the outcomes of the 50% (or even 25%) tariffs on steel and aluminum imported from Canada is that it will drive up materials prices in the U.S. Higher steel prices may weigh on the construction sector. This fund could face profitability issues as steel is a key raw material in the industry it is exposed to.</li>
</ul>
<ul>
<li>The Invesco Food &amp; Beverage ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>): This fund could see headwinds as higher aluminum costs may pressure the food and beverage bottling industry as well. Companies like Diageo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>), Coca-Cola (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), and PepsiCo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) likely to face increased costs.</li>
</ul>
<h2 class="wp-block-heading">U.S. Steel Industry Backs The Move</h2>
Despite the market jitters, U.S. steel manufacturers are largely in favor of the tariffs. In a <a href="https://www.steel.org/2025/03/five-steel-groups-pledge-support-for-steel-tariffs-applaud-actions/">letter </a>to the president, five steel industry executives, represented by American Iron and Steel Institute, expressed their strong support for the 25% tariffs. Moreover,&nbsp;Jesse Gary, the CEO of&nbsp;Century Aluminum&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CENX#NASDAQ">CENX</a>) <a href="https://www.benzinga.com/markets/equities/25/03/44269301/trumps-25-tariffs-on-steel-and-aluminum-imports-take-effect-eu-retaliates-us-steel-nucor-century-aluminum-and-other-domestic-stocks-cheer">told the New York Times</a>, &#8220;The new tariffs will close those loopholes back up and enable us to begin investing again, and bring on more production here in the U.S.&#8221;
While steel producers in the U.S. are supportive, the aluminum industry has shown a mixed reaction. Alcoa CEO William Oplinger <a href="https://www.investopedia.com/alcoa-s-ceo-says-trump-tariffs-could-wipe-out-100-000-u-s-jobs-11686292">voiced </a>concerns that tariffs could hurt the U.S. aluminum sector due to the company's strong ties to Canadian operations.
The impact of tariffs will likely trickle down to consumers as well. Domestic steel prices have already surged from around $700 to nearly $1,000 per ton since Trump's initial announcement in February. A Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-03-11/trump-s-metal-tariffs-set-to-hit-favorites-like-baseball-bats-and-fishing-reels">report </a> said that higher costs could affect a range of products, from aluminum baseball bats to stainless steel cookware and fishing reels.
Investors should keep an eye on ETFs exposed to these sectors, as they may see significant movement in the coming weeks. Whether Trump follows through with the full 50% tariff or retreats from the threat, the ripple effects will be felt across multiple industries and investment tools.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/new-etfs/25/03/44285737/dailydelta-rolls-out-etfs-for-daily-nasdaq-100-index-movements">DailyDelta Rolls Out ETFs For Daily Nasdaq-100 Index Movements</a></li>
</ul>
Image: Midjourney

ETFs

CENX

iShares Trust Dow Jones US Basic Materials Sector Index Fund

PowerShares ETF Trust Dynamic Building &nstruction Portfolio

STLD

Steel & Aluminum Import Tariff Threat: 4 ETFs Gaining & Losing In The Market Shake-Up

A February filing shows that Senator Thomas H Tuberville reported a sale in Tractor Supply (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSCO#NASDAQ">TSCO</a>), valued between $76,006 and $265,000. The transaction date is listed as February 14, 2025, with the report published on February 14, 2025.
At present, Tractor Supply shares are trading down 0.07% at $56.95.
<h3>Senator's Recent Trading Activity</h3>
In the past three years, Thomas H Tuberville made 972 stock trades totaling more than $14.58 million. The largest trades involved stocks like ChannelAdvisor and Microsoft. Their most notable trades made recently include key transactions: 
<ul>
<li>Tractor Supply (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSCO#NASDAQ">TSCO</a>): $15,001 - $50,000 Sale</li>
<li>Texas Instruments (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>): $15,001 - $50,000 Sale</li>
<li>Diageo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>): $15,001 - $50,000 Sale</li>
</ul>
Here's a summary of Thomas H Tuberville's recent trades:
<table>
<thead>
<tr>
<th>Company</th>
<th>Ticker</th>
<th>Stock Type</th>
<th>Amount</th>
<th>Transaction Type</th>
<th>Transaction Date</th>
</tr>
</thead>
<tbody>
<tr>
<td>Tractor Supply</td>
<td>TSCO</td>
<td>STOCK</td>
<td>$15,001 - $50,000</td>
<td>S</td>
<td>2025-01-10</td>
</tr>
<tr>
<td>Carrier Global</td>
<td>CARR</td>
<td>STOCK</td>
<td>$1,001 - $15,000</td>
<td>S</td>
<td>2025-01-10</td>
</tr>
<tr>
<td>Texas Instruments</td>
<td>TXN</td>
<td>STOCK</td>
<td>$15,001 - $50,000</td>
<td>S</td>
<td>2025-01-10</td>
</tr>
<tr>
<td>Diageo</td>
<td>DEO</td>
<td>STOCK</td>
<td>$15,001 - $50,000</td>
<td>S</td>
<td>2025-01-10</td>
</tr>
<tr>
<td>Microsoft</td>
<td>MSFT</td>
<td>STOCK</td>
<td>$15,001 - $50,000</td>
<td>S</td>
<td>2025-01-10</td>
</tr>
</tbody>
</table>
If you want to stay updated on Thomas H Tuberville's trades and other congressional members, check out our <a href="https://www.benzinga.com/gov-trades/members/thomas-h-tuberville">government trades tool</a> to track their activity in real time!
<h3>The Importance of Congressional Transactions</h3>
A congressional transaction is when any representative or senator either buys or sells an individual stock.
Anyone working in Congress must file a Periodic Transaction Report to inform the public of their recent transaction within 30 days of being notified of the transaction and within 45 days of the transaction date.
In April 2012, Former President Barack Obama signed the STOCK Act into law. The act prohibits members of Congress from using private information given to them by their position for personal gain such as buying or selling a stock. The act also expanded disclosure requirements for members of Congress by requiring them to file a monthly disclosure.
<h3>The Importance of Congressional Transactions</h3>
Congressional transactions shouldn't be the primary reason for an investing decision, but they can be an important factor for an investor to consider.
When a senator or representative makes a new purchase, it could be an indication they expect the stock to rise.
A sale, on the other hand, can be made for a variety of reasons, and may not necessarily mean the seller thinks the stock will go down.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Politics

General

TSCO

This Senator Just Sold Up To $265K In Tractor Supply Stock

Diageo Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) shares are trading lower Wednesday following the company's first-half, fiscal-year 2025 earnings report, which showed a year-over-year decline in financial results. The stock is also under pressure due to concerns <a href="https://www.benzinga.com/25/02/43463646/alcohol-giant-diageo-suspends-guidance-as-trumps-tariff-looms">over new U.S. tariffs on imported alcohol.</a>
What To Know: The company reported net sales of $10.9 billion for the first half of fiscal 2025, down 0.6% from the previous year, primarily due to unfavorable foreign exchange fluctuations. Organic net sales grew by 1%, driven by price and mix improvements. Operating profit fell 4.9%, and the company's operating profit margin contracted by 132 basis points, impacted by currency headwinds and lower organic operating margins.
Despite these challenges, Diageo maintained or expanded market share in 65% of measured markets, including the U.S. The company also reported an increase in net cash flow, which rose by $0.2 billion to $2.3 billion, while free cash flow increased to $1.7 billion.
One of the primary concerns weighing on Diageo's stock is the implementation of U.S. tariffs, which the company acknowledged could disrupt its momentum in the second half of fiscal 2025. While Diageo had anticipated the possibility of tariffs, their confirmation adds uncertainty to the company's outlook. As a result, Diageo suspended its medium-term guidance and committed to providing more frequent near-term updates. 
CEO Debra Crew noted that the company is taking steps to mitigate the impact but emphasized the broader economic consequences for the hospitality industry.
The tariff concerns, coupled with weaker first-half financial results and an expected decline in organic operating profit for the second half of the fiscal year, have contributed to Diageo's stock decline. The company's leverage ratio stood at 3.1x net debt to EBITDA as of December 2024 and it declared an interim dividend of 40.5 cents.
DEO Price Action: Diageo shares closed Wednesday down 3.86% at $111.47, according to <a href="https://pro.benzinga.com/dashboard?new_user=False&amp;backend=google-oauth2">Benzinga Pro.</a>
<figure class="wp-block-image size-large is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020525&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="564" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05154502/Screenshot-2025-02-05-at-15.44.21-1024x564.png" alt="" class="wp-image-767935" style="width:417px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05154502/Screenshot-2025-02-05-at-15.44.21-1024x564.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05154502/Screenshot-2025-02-05-at-15.44.21-300x165.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05154502/Screenshot-2025-02-05-at-15.44.21-768x423.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05154502/Screenshot-2025-02-05-at-15.44.21.png 1495w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/personal-finance/25/02/43508330/are-you-an-upper-class-retiree-heres-a-look-at-the-net-worth-that-makes-you-poor-middle-class-or-rich-in-retirement">Are You An &#8216;Upper Class&#8217; Retiree? Here&#8217;s A Look At The Net Worth That Makes You Poor, Middle Class, Or Rich in Retirement</a></li>
</ul>
Photo: Shutterstock.

Diageo Shares Are Down Today: What's Going On?

Diageo shares are trading lower. The company may be moving on continued weakness after reporting a year-over-year decline in H1 financial results yesterday. Additionally, the threat of tariffs may be weighing negatively on the stock.

Alcoholic beverage company Diageo Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) released first-half <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">FY25 earnings results</a> and suspended medium-term guidance.
The company reported net <a target="_blank" href="https://www.diageo.com/en/news-and-media/press-releases/2025/2025-interim-results-half-year-ended-31-december-2024" rel="noreferrer noopener">sales </a>of $10.9 billion for the half year ended December 2024, reflecting a slight decline of 0.6% primarily driven by unfavorable foreign exchange fluctuations.
Despite the decrease, organic net sales showed a positive growth of 1.0%, bolstered by favorable price/mix changes. However, volume experienced a slight dip of 0.2%.
The company&#8217;s operating profit also decreased by 4.9%, with its operating profit margin shrinking by 132 basis points, impacted by currency movements and lower organic operating margins.
Despite this, Diageo managed to maintain or grow market share in 65% of total net sales value in measured markets, including the U.S.
Moët Hennessy&#8217;s significantly lower contribution and unfavorable currency exchange rates were the primary reasons behind a 9.6% drop in pre-exceptional earnings per share, which fell to 97.7 cents.
On the other hand, the company saw an increase in net cash flow, rising by $0.2 billion to reach $2.3 billion, with free cash flow rising to $1.7 billion, an increase of $0.1 billion compared to last year.
Given ongoing uncertainty in both the geopolitical and macroeconomic landscapes across key markets, Diageo has decided to withdraw its medium-term guidance.
Instead, the company has committed to providing more frequent near-term updates on its performance.
Also Read: <a target="_blank" href="https://in.benzinga.com/news/global/25/02/43442219/why-beer-tequila-avocados-cars-iphone-prices-could-rise-trumps-tariffs-on-canada-mexico-china-to-hurt-several-sectors" rel="noreferrer noopener">Why Beer, Tequila, Avocados, Cars, iPhone Prices Could Rise: Trump&#8217;s Tariffs On Canada, Mexico, China To Hurt Several Sectors</a>
&#8220;Diageo has anticipated and planned for a number of potential scenarios regarding tariffs in recent months. The confirmation at the weekend of the implementation of tariffs in the US, whilst anticipated, could very well impact this building momentum,&#8221; said CEO Debra Crew.
&#8220;It also adds further complexity in our ability to provide updated forward guidance given this is a new and dynamic situation. We are taking a number of actions to mitigate the impact and disruption to our business that tariffs may cause, and we will also continue to engage with the US administration on the broader impact that this will have on everyone supporting the US hospitality industry, including consumers, employees, distributors, restaurants, bars and other retail outlets.&#8221;
Diageo declared an interim dividend of 40.5 cents. The company&#8217;s leverage ratio stood at 3.1x net debt to EBITDA as of December 2024.
Price Action: DEO shares are trading lower by 0.06% at $116.86 in premarket at the last check Tuesday.
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Image by pil76 via Shutterstock.

Alcohol Giant Diageo Suspends Medium-Term Guidance As Trump's Tariff Looms

Fiscal 25 outlook Organic net sales growth In the second half of fiscal 25, before the impact of the tariffs, we would have expected to build on the momentum seen in the first half and would have expected to deliver a sequential improvement in organic net sales growth compared with the first half of fiscal 25. The confirmation at the weekend of the implementation of tariffs in the US could however impact this building momentum. We still expect to continue to deliver strong market share performance. Organic operating profit growth Before taking into consideration the potential impact of tariffs we had expected a slight decline in organic operating profit in the second half of fiscal 25 compared with the prior year, broadly in line with the decline in the first half, reflecting higher staff costs (given lower incentive comparatives in the same period last year), and continued strategic investments including in digital and US route-to-market. Clearly the implementation of tariffs could further impact this and when we can more accurately assess the impact we will update as appropriate.

Diageo Anticipates Continued Strong Market Share In 2025, But Tariff Impact Remains A Key Watchpoint

Diageo H1 EPS $0.98 Down From $1.08 YoY, Sales $10.90B Down From $10.962B YoY

BF/A

BF/B

WVVI

Shares of alcohol stocks are trading lower as investors assess U.S. tariff risks which may negatively impact the industry.

Beer and spirits maker Diageo plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) has said that it is selling its 80.4% stake in Guinness Ghana Breweries plc to Castel Group, deepening its ongoing <a target="_blank" href="https://www.diageo.com/en/news-and-media/press-releases/2025/diageo-plc-sells-its-shareholding-in-guinness-ghana-breweries-plc-to-castel-group-for-81-million" rel="noreferrer noopener">collaboration with the African multinational</a>.
Although this sale takes place, Diageo will still hold the rights to the renowned Guinness brand, along with other products it currently manufactures at the brewery.
These items will remain in production under a new long-term licensing and royalty arrangement, according to Diageo.
The company will continue to oversee the marketing and strategy for the Guinness brand in partnership with Castel.
This arrangement will enable Diageo to retain control over the brand&#8217;s direction while leveraging Castel&#8217;s regional expertise. The collaboration with Castel spans 11 additional African markets, where the companies already work together.
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&#8220;Guinness Ghana is performing strongly powered by a fantastic team of people. Through this transaction, I look forward to the Guinness brand continuing to thrive and delivering further growth,&#8221; said President Diageo Africa and Chief Commercial Officer Dayalan Nayager.
All Diageo brands currently produced by Guinness Ghana, including Guinness, Malta, Orijin, Smirnoff Ice and Alvaro, and mainstream spririts, will continue to be produced under new license and royalty agreements.
This move supports Diageo&#8217;s asset-light business model, which emphasizes tailoring market approaches to local conditions in order to boost profitability.
This transaction is part of Diageo&#8217;s ongoing efforts to manage its portfolio, building on the recent sale of its stake in Guinness Nigeria and other strategic actions designed to accelerate growth in West Africa.
Price Action: DEO shares are trading lower by 0.87% at $122.46 in premarket at the last check Wednesday.
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</ul>
Photo via Shutterstock.

Asset Sales

Alcohol Giant Diageo Sells Majority Stake In Guinness Ghana For $81 Million

Diageo shares are trading higher after the company announced they will review their drinks portfolio to reignite growth.

<a href="https://www.bloomberg.com/news/articles/2025-01-24/diageo-is-said-to-review-drinks-portfolio-to-reignite-growth?sref=2h1zKciy" title="https://www.bloomberg.com/news/articles/2025-01-24/diageo-is-said-to-review-drinks-portfolio-to-reignite-growth?sref=2h1zKciy">https://www.bloomberg.com/news/articles/2025-01-24/diageo-is-said-to-review-drinks-portfolio-to-reignite-growth?sref=2h1zKciy</a>

Management

'Diageo Is Said To Review Drinks Portfolio To Reignite Growth; Spirits Maker Seen Likely To Reduce Medium-Term Guidance; Diageo Weighing Options For $10B Guinness Brand' - Bloomberg News

TD Cowen maintains Diageo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>) with a Hold and raises the price target from $124 to $129.

Price Target

Analyst Ratings

TD Cowen Maintains Hold on Diageo, Raises Price Target to $129

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