0846 GMT - Diageo's withdrawal of its mid-term target is broadly positive given that it brings the company's aspirations to a more realistic level, RBC Capital Markets' James Edwardes Jones and Wassachon Udomsilpa say. The owner of Johnnie Walker, Guinness and Smirnoff reported a positive performance for the first half, ahead of market expectations. Meanwhile, full-year guidance reflects a sequential increase in organic sales growth and a slight decline in organic EBIT, the analysts write in a note. The guidance removal is welcome as it led to unrealistic investor expectations and sub-optimal management decisions designed to support an unfeasible growth aspiration. The target has been replaced by more comprehensive short-term guidance with the promise of improved productivity efforts and tighter capital discipline, they say. Shares are down 2.7% and nearly 20% over the 52-week period. (michael.susin@wsj.com)
(END) Dow Jones Newswires
February 04, 2025 03:46 ET (08:46 GMT)
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