How has Diageo and Reckitt Benckiser’s recent news affected their share prices?
Over the past month, there have been several share price news releases by FTSE 100 global consumer goods companies Diageo (LON: DGE) (DGE.L) and Reckitt Benckiser (LON: RKT) (RKT.L).
For example, Diageo announced on 14 April that it acquired Loyal 9 Cocktails from Sons of Liberty Spirits Company. Loyal 9 Cocktails is a spirits brand that was launched in 2018 in Rhode Island. It produces vodka-based ready to drink cocktails.
The acquisition forms part of Diageo’s strategy to grow and diversify its ready to drink offerings across a variety of price points and consumer segments. It will be funded through existing cash resources.
There have also been several director deals in the company’s shares in the past month. The vast majority of them have been dividend reinvestments or awards under incentive schemes. In addition, Chairman Javier Ferran purchased 262 shares for a total consideration of just over £8,000 on 12 April.
Over the past month, the Diageo share price has risen by 7% versus a 3% rise for the FTSE 100 index. Over the past year and five years, the beverages company’s shares have returned 25% and 70% respectively. It currently trades at 3207p at the time of writing.
Meanwhile, Reckitt Benckiser announced on 31 March that it will rebrand as ‘Reckitt’. According to the company, the new brand ‘reflects our dynamism, speed and agility as a business’. As a result, its ticker symbol has changed from ‘RB’ to ‘RKT’.
The consumer goods company also released details of its new sustainability strategy on 30 March. It includes more than £1 billion in existing investment over the ten years. It means that every one of its brands is purpose-led, in terms of directing its focus to where it can make most impact in accelerating progress in sustainability. It forms part of the firm’s wider focus on ESG-related matters that have become increasingly important to consumers over recent years.
In the past month, the Reckitt Benckiser share price has gained 3%. In the past year and five years, the company’s stock price has risen 5% and is down 1%, respectively. It currently trades at 6688p at the time of writing. Its next investor update is due to be released on 12 May, when its AGM is scheduled to take place.
Not Investment Advice
Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.