Diageo Completes Sale of Its Guinness Nigeria Share to Tolaram

Diageo plc DEO has been making smart moves to enrich experience and aid growth. In the latest announcement, the company unveiled that it has concluded the sale of its shareholding in Guinness Nigeria PLC to Tolaram.More on the Latest AnnouncementThe aforesaid transaction is in sync with DEO’s growth-ambition initiatives to aid the next phase of sustainable growth. This transaction is consistent with Diageo’s asset-light beer operating model. This model enables the selection of the most suitable structure and route to market for Guinness while retaining ownership of the iconic Guinness brand.The sale announcement was originally made on June 11 this year. Per the terms, management had earlier cited that Tolaram would buy Diageo’s 58.02% shareholding in Guinness Nigeria PLC, which is listed on the Nigerian Stock Exchange, for a price of 81.60 NGN per share. Tolaram, being a major consumer packaged goods company, boasts extensive operations in the region. (Read more: Diageo, Tolaram Alliance to Aid Growth in Guinness Nigeria)Image Source: Zacks Investment ResearchDiageo is keen on investing in strategic initiatives to drive long-term organic growth. Guinness Nigeria PLC will retain the production and nationwide distribution of Guinness and the other locally manufactured brands in Nigeria, per the license and royalty agreement highlighting DEO’s robust beer operating model.What More on the Horizon?Diageo is progressing well in its new productivity commitment to deliver $2 billion of productivity savings over the three years from fiscal 2025 to fiscal 2027. This Zacks Rank #2 (Buy) company expects to deliver this accelerated productivity commitment across the cost of goods, marketing spending and overheads. Notably, it delivered $0.7 billion of productivity cost savings in fiscal 2024.Diageo has been experiencing significant gains from improved price/mix that have been aiding growth despite soft volume. The higher price/mix is mainly the result of price increases across all regions, supported by the company’s efficient product portfolio. It plans to support this acceleration through investments, including its supply-chain agility program announced in July 2022.Diageo’s shares have gained 13.3% in the past three months compared with the industry’s 11% growth.Other Stocks to ConsiderThe Chef's Warehouse CHEF, which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. The Zacks Consensus Estimate for CHEF’s current financial-year sales and earnings per share (EPS) indicates growth of 9.7% and 12.6%, respectively, from the year-ago numbers.Flowers Foods FLO offers baked items and has a Zacks Rank of 2 at present. FLO has a trailing four-quarter average earnings surprise of 1.9%.The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and EPS implies growth of 1% and 5%, respectively, from the year-ago numbers.Nomad Foods NOMD, which manufactures frozen foods, currently carries a Zacks Rank of 2. NOMD has a trailing four-quarter earnings surprise of 3.1%, on average.The Zacks Consensus Estimate for Nomad Foods’ current financial-year sales and EPS indicates growth of 4.3% and 12.6%, respectively, from the year-ago numbers.Infrastructure Stock Boom to Sweep AmericaA massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.The only question is “Will you get into the right stocks early when their growth potential is greatest?”Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How To Profit From Trillions On Spending For Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Diageo plc (DEO): Free Stock Analysis Report Flowers Foods, Inc. (FLO): Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report Nomad Foods Limited (NOMD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks