Diageo PLC: Read X Agenda (United Spirits)

研报英文原文证据摘录

Diageo PLC: Read X Agenda (United Spirits)

Equity Research

European Consumer Staples

15 May 2026

Diageo PLC

Read X Agenda (United Spirits)

First LookUnited Spirits today hosted a conference call to discuss its

FY26 annual results. We present our key takeaways from the

call, which are relevant for Diageo and also provide a useful DGE.L/DGE LN OVERWEIGHT European Consumer

Staplesread-across to Pernod-Ricard. NEUTRAL

Price Target GBp 2320

Price (14-May-26) GBp 1500

•• UK-India FTA to likely accelerate growth to mid-teens: Management reiterated double- Potential Upside/Downside +54.7%

digit growth for its Prestige and Above (P&A) portfolio, while the Popular portfolio is likely to Source: Bloomberg, Barclays Research

remain soft amid issues in Maharashtra. While management did not provide an exact timeline

for implementation of the trade deal, they indicated it is likely to happen very soon, which European Consumer Staples

suggests it could be within this quarter, although it may spill over into the next. They also Laurence Whyatt

confirmed a high single-digit retail price reduction once implemented. Assuming unit +44 (0)20 7773 5324

elasticity, this could drive a meaningful uplift in volumes and push overall group organic laurence.whyatt@barclays.com

growth towards the mid-teens. Barclays, UK

Ashutosh Jain

•• Inflation amid the Iran war remain manageable (for now): Management reported input +91 (0)22 6175 1452

cost inflation of around 4–5% in the current quarter, and indicated that if the situation ashutosh.jain@barclays.com

worsens, this could escalate by a factor of 2–2.5x in the next quarter. Given the pricing lags, Barclays, UK

they remain confident in delivering mid to high-teens EBITDA margins, while maintaining A&P

Imogen McCurley

at around 10.5%.