Diageo’s shares are finally showing a little more spirit after a terrible run for the owner of Smirnoff vodka, Captain Morgan rum, Johnnie Walker whisky and Guinness, say analysts at AJ Bell.
Whether this is specific to the company, or part of a wider recovery, new chief executive Sir Dave Lewis will be pleased to see the improvement as he prepares to put his stamp on the company.
However, the stock is still down nearly 16% over one year as input cost pressures, worries over changes in drinking habits across generations, tariffs, and the possible impact on demand of GLP-1 weight-loss drugs have all had an impact.
A cooling in the once red-hot tequila market and China’s ongoing crackdown on conspicuous consumption have also contributed to weak operational performance.
Diageo has responded with a cost-cutting programme, although management has refrained from major changes to the corporate structure, despite ongoing speculation about asset sales.
For the first-half results, analysts expect a 3% drop in organic sales, for a headline revenue figure of $10.5 billion; a 4% drop in organic profits, producing pre-tax income of $2.7 billion; and an unchanged first-half dividend of $0.405.
Macfarlane
Scottish packaging company Macfarlane posts full-year figures on Thursday and the market will want an update on the restoration of operations at its Pitreavie business after it was disrupted by a tragic accident.
The Glasgow-based company is investing £1.2m in equipment to back the return to normal production .
Additionally, it is preparing its pension scheme for a potential buy-in, which is expected to result in a non-recurring accounting charge of £2m to £3m because of an increase in the cost of historic pension equalisation.
The board has guided the market to expect adjusted operating profit at £19.1m as set out in its trading update on 22 October.
HSBC
HSBC closes the banking season with an expected 10.7% year-on-year decline in pre-tax profit of $28.86 billion while the fourth interim dividend is forecast to rise nearly 17%. Excluding the special dividend paid in 2024, the full-year payout would increase about 9%.
The shares are currently up 43% over year and hit a fresh record high in early February.
Richard Hunter, head of markets at Interactive Investor, said that there has been “evidence of growing success for [HSBC’s] strategic plan, which is significant but simple”.
“Whereas HSBC had been moving towards becoming a business with a slavish reliance on interest rate movements and levels, the revised and increasing focus on the growth in affluent wealth, especially in Asia, is key to the new offering,” he said.
“The group has been investing heavily in this move, giving HSBC higher, but more diversified income streams.”
Rolls-Royce
Rolls-Royce is expected to deliver another positive set of year-end figures amid a continuing surge in its shares. They are up 15% since the start of 2026 and have soared 106% over one year.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “There’s been little sign of turbulence at Rolls-Royce of late, with strong demand in its civil aerospace business remaining a running theme.
“Large engine flying hours, a key driver of revenue for civil aerospace, grew by 8% over the first 10 months of the year, reaching 109% of pre-pandemic levels,” he said. “There’s also been a significant amount of large engine orders coming in.
“Elsewhere in the business, positive momentum in the power systems division continues to be driven by impressive growth in data centres, where demand for backup power systems remains high.”
DIARY
Monday 23 February
- Full-year results from Mony Group
Tuesday 24 February
- Full-year results from Standard Chartered and UNITE
- First-half results from McBride
Wednesday 25 February
- Full-year results from Hiscox, HSBC and Aston Martin Lagonda
- First-half results from Diageo
- BRC UK Shop price index
Thursday 26 February
- Full-year results from Macfarlane, Rolls-Royce, London Stock Exchange and Ocado
- Trading statement from Tate & Lyle
- Nationwide UK house price index
Friday 27 February
- Full-year results from International Consolidated Airlines, Melrose Industries and Pearson
- First-half results from Hays
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