A FURTHER insight into the mood of the consumer will emerge this week with updates from Diageo, Punch Taverns and bookie William Hill.
Guinness- to-Smirnoff drinks giant Diageo will hope to soothe nerves over the company’s prospects when it presents Thursday’s full-year results, amid doubts over the long-term health of its main markets.
The firm noted “some signs of recovery” after 12% sales growth in the first quarter of 2010, although the performance was flattered by comparison with the worst of the recession and it said consumer trends were “difficult to predict”.
Diageo – also behind brands such as Captain Morgan rum, Tanqueray gin and Jose Cuervo tequila – stuck to its prediction of “low single digit” profits growth for the year at its last update in May.
But shares have wobbled since the end of July and JP Morgan cut its target price on the firm last week amid worries over the outlook – particularly in European markets.
