Weak pound sends Guinness maker Diageo shares to record high
Shares of Guinness maker Diageo hit an all-time high of £36.03 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 29% this year and by a whopping 96.5% from the £18.33 on June 23, 2016 when the UK voted to leave the European Union in a referendum.
The world's largest spirits company, which makes Johnnie Walker, Smirnoff vodka as well as Guinness, saw its operating profit soar 10% to £4bn for the year ended June 30.
Its big winner last year was a whisky called 'White Walker by Johnnie Walker', inspired by hit TV series Game of Thrones.
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 potential headwinds as a potential trade war with the US could hit sales of its products in America.
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