Diageo shares hit all-time high as the pound suffers
Shares of Guinness-maker Diageo hit an all-time high of £36.03 (€39.60) yesterday as the pound sank on the rising prospects of a no-deal Brexit.
Although the company is London-headquartered, most of its earnings come from outside the UK, so a weaker pound is a positive for earnings. The drinks-maker's stock has risen 29pc this year and by 96.5pc from £18.33 on June 23, 2016, when the UK voted to leave the EU in a referendum.
Please log in or register with Independent.ie for free access to this article.
The world's largest spirits company, which makes Johnnie Walker whisky and Smirnoff vodka as well as Guinness, saw its operating profit soar by 10pc to £4bn for the year ended June 30.
Its big winner last year was a 'Game of Thrones'-inspired whisky called White Walker by Johnnie Walker.
The company also approved plans to return up to £4.5bn to shareholders from 2020-2022.
While the earnings and the prospect of share buybacks have boosted the stock, it does face some possible headwinds as a potential trade war with the US could hit sales of its products in America.