Research on Central European Distribution and Diageo: Beverage Sectors Sees Consolidation and Restructuring
LONDON, February 27, 2013 /PRNewswire/ --
Brewery industry is going through interesting time as the companies in this sector are aggressively pursuing M&A activities. Diageo plc (NYSE: DEO) is on the verge of acquiring an Indian spirit company and its stock shows good growth. The company recently announced $1.1272 per share in semi-annual dividend. Coupled with good capital growth, the stock offers good returns. The company shows good revenue growth despite weakness in European market. Central European Distribution Corp. (NASDAQ: CEDC) stock, on the other hand, suffered major value decline in the recent past. However, the company is undertaking extensive organizational and financial restructuring to get back in the game. StockCall has posted free technical research reports on Central European Distribution and Diageo and these can be accessed by signing up at
http://www.stockcall.com/analysis
Diageo plc Announces Higher Net Income
Diageo is aggressively pursuing growth through acquisitions. The company is currently in negotiations over the purchase of United Spirits Ltd. The deal is likely to be worth $2 billion and will help the company gain a foothold in emerging Indian market. The company is expected to receive requisite regulatory approval soon. Diageo technical report can be accessed for free by signing up at
http://www.StockCall.com/DEO022713.pdf
Diageo's stock is up 2 percent so far this year and it grew 25 percent in the past 12 months. The company's dividend yield stands at 1.94 percent, offering good returns to its investors. With payout ratio of 42 percent, the company dividend is in safe hands. Its latest acquisition in India is likely to create synergies and the stock is expected to perform well. Diageo plc has a number of popular brands in its portfolio, generating good revenue growth. The company reported 61 percent increase for its first half of the year. Diageo plc earned $2.43 billion in net income. The company benefited from growth in emerging markets and higher selling price. It also undertook cost cutting measures, boosting its margins.
Diageo reported good sales growth in Latin America while its volume in Europe suffered. The company is looking to expand into emerging markets to counter the declining demand in developed markets such as the United States and Europe.
Central European Distribution Corp. Restructures Business
Central European Distribution specializes in Vodka and its stock lost 88 percent of its value in the past 1 year. The company's downfall may be partly attributed to the departure of its CEO last year. It is now planning to restructure its business and is contemplating Bond swap to cut its debt. The company expects to reduce its debt load by $750 million. Its management team is also undergoing makeover as it announced the appointment of its new CFO. Download the free report on Central European Distribution Corp. upon registration at
http://www.StockCall.com/CEDC022713.pdf
Central European Distribution also settled a deal with Roustam Tariko, its biggest shareholder. Pursuant to the deal, Roustam Tariko gained the operational control of the company. It also infused $65 million worth of funds. It is expected that the new arrangement will help the company in regaining its position as it receives much needed funds. The company is currently running losses and its stock price lost most of its value in the previous 12 months period. So far this year, the stock is down 70 percent. While the situation is dire, the company is likely to pull through it.
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