Guinness Is A Tempting Tipple For Thirsty Hedge Funds: Gadfly
Two years ago, Diageo looked like the perfect tipple for an activist investor. Then Britain voted to leave the EU and - with 94% of its revenue in currencies other than sterling - the company got a lucky boost from a slumping pound.
The shares have risen almost 50% since June 2016, weakening the activist case, and easing the pressure on chief executive Ivan Menezes.
But sterling's recovery and the dollar's Mnuchin-approved weakness is reversing some of those gains. The company said on Thursday that adverse currency movements would hurt full-year sales by £460 million pounds, and operating profit by £60 million.
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