InvestNow News – 12th March – Elevation Capital – Diageo
Article written by Elevation Capital – March 2021
Lockdown restrictions imposed by governments in response to COVID-19 has had a significant on the hospitality industry which has flow on effects to the alcoholic beverage industry. On-premise (restaurants, bars, etc.) sales in 2020 reduced as consumers were forced into accepting new routines. Diageo’s revenue fell by -23.61% from 30 June 2019 to 30 June 2020 while its share price fell -20.48% during the same period, presenting an attractive opportunity for the Elevation Capital Global Shares Fund to reacquire a position in this truly global company (we previously owned Diageo from 2014 to 2018).
Despite the downturn in sales in both volume and dollar terms which is likely to persist until lockdown restrictions are eased, we have reason to remain optimistic about the company’s long-term future. Diageo has increased its cash available for acquisitions which enables continued investment in high growth segments within the global drinks industry. We are confident that Diageo is well positioned to weather the economic downturn and emerge in a strong position globally once a “new normal” is established.
DISCLAIMER
Elevation Capital Management Limited is a Registered Financial Service Provider in New Zealand in accordance with the Financial Service Providers (Registration and Disputes Resolution) Act 2008 — FSP # 9601. Elevation Capital Management Limited is licensed under the Financial Markets Conduct Act 2013 as a manager of registered schemes. Elevation Capital Management Limited does not provide personalised investment advisory services to the public. Nothing herein should be construed as a general advertisement of investment advisory services or a solicitation of prospective clients for investment advisory services. The information herein is intended solely to provide certain background information about Elevation Capital’s investments on behalf of the Fund/s or Separate Accounts it manages or advises on. Elevation Capital Management Limited, its directors, employees and agents believe that the information herein is correct at the time of compilation; however, they do not warrant the accuracy of the information. Save for any statutory liability which cannot be excluded, Elevation Capital Management Limited further disclaims all responsibility or liability for any loss or damage which may be suffered by any person relying on any information or any opinions, conclusions or recommendations contained herein whether that loss or damage is caused by any fault or negligence on the part of Elevation Capital Management Limited, or otherwise. Past performance is not an indication of future results.
InvestNow News – 12th March – Elevation Capital – Diageo
Article written by Elevation Capital – March 2021
Lockdown restrictions imposed by governments in response to COVID-19 has had a significant on the hospitality industry which has flow on effects to the alcoholic beverage industry. On-premise (restaurants, bars, etc.) sales in 2020 reduced as consumers were forced into accepting new routines. Diageo’s revenue fell by -23.61% from 30 June 2019 to 30 June 2020 while its share price fell -20.48% during the same period, presenting an attractive opportunity for the Elevation Capital Global Shares Fund to reacquire a position in this truly global company (we previously owned Diageo from 2014 to 2018).
Despite the downturn in sales in both volume and dollar terms which is likely to persist until lockdown restrictions are eased, we have reason to remain optimistic about the company’s long-term future. Diageo has increased its cash available for acquisitions which enables continued investment in high growth segments within the global drinks industry. We are confident that Diageo is well positioned to weather the economic downturn and emerge in a strong position globally once a “new normal” is established.
DISCLAIMER
Elevation Capital Management Limited is a Registered Financial Service Provider in New Zealand in accordance with the Financial Service Providers (Registration and Disputes Resolution) Act 2008 — FSP # 9601. Elevation Capital Management Limited is licensed under the Financial Markets Conduct Act 2013 as a manager of registered schemes. Elevation Capital Management Limited does not provide personalised investment advisory services to the public. Nothing herein should be construed as a general advertisement of investment advisory services or a solicitation of prospective clients for investment advisory services. The information herein is intended solely to provide certain background information about Elevation Capital’s investments on behalf of the Fund/s or Separate Accounts it manages or advises on. Elevation Capital Management Limited, its directors, employees and agents believe that the information herein is correct at the time of compilation; however, they do not warrant the accuracy of the information. Save for any statutory liability which cannot be excluded, Elevation Capital Management Limited further disclaims all responsibility or liability for any loss or damage which may be suffered by any person relying on any information or any opinions, conclusions or recommendations contained herein whether that loss or damage is caused by any fault or negligence on the part of Elevation Capital Management Limited, or otherwise. Past performance is not an indication of future results.
