DGE, ART, GUS: Liquor stocks in focus as sales rise in April

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DGE, ART, GUS: Liquor stocks in focus as sales rise in April

 DGE, ART, GUS: Liquor stocks in focus as sales rise in April
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Highlights:

  • The retail sales volume for alcohol and tobacco rose by 8.4% in April.
  • Despite the inflation squeeze, people flocked to stores to buy alcohol and cigarettes, the latest ONS data has revealed.
  • The overall retail sales in the UK saw a 1.4% rise in April after contracting in March.

Millions of UK households are now exercising caution with their expenses. The high cost of living linked with the record-high inflation has started to eat up their savings. Consumer confidence has slipped to the lowest levels since 1974, according to the latest data from GfK. However, despite the price rise forcing people to cut down spending on necessities, retailers witnessed a boost in sales in April.

The boost was primarily led by the sales of alcohol and tobacco products, as per data from the Office for National Statistics released on Friday.

The data revealed that alcohol and tobacco stores reported an 8.4% rise in sales over the month. It also showed that more customers flocked to food stores and supermarkets to buy cigarettes and alcoholic beverages despite the high price tags.

Alcohol and tobacco stores reported an 8.4% rise in sales in April.

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Overall, retail sales in the UK rose by 1.4% in April after contracting in March. In contrast with the pre-coronavirus period of February 2020, the sales were 4.1% higher. Food store sales were 2.8% higher in April 2022 after declining for five straight months, while supermarkets reported a 2.9% increase in sales volumes.

On the other hand, specialist food stores, like butchers and bakeries, witnessed a 1.4% decline in sales during the period.

Let us take a look at some liquor stocks and how they have been faring.

Diageo Plc (LON: DGE)

Diageo is among the world's biggest alcoholic beverage makers, with headquarters in London. The company is spread over 180 countries and has more than 200 brands under its portfolio. Some of its most prominent brands include Johnnie Walker, Captain Morgan, Crown Royal, Smirnoff, and Baileys.

Diageo's shares have given a return of 8.22% to the investors over the past one year. As of 11:55 am GMT+1 on 20 May 2022, the share price was hovering at GBX 3,622.00. The company currently holds a market cap of £81,880.84 million.

The Artisanal Spirits Company Plc (LON: ART)

The Edinburgh-based company owns The Scotch Malt Whisky Society, which sells premium single cask Scotch whisky online. In the year to March 2022, its revenue climbed 21% to £18.2 million, and the gross profit increased by 27% to £11.2 million.

The Artisanal Spirits Company holds a market capitalisation of £53.94 million as of 20 May 2022. It was listed on the London Stock Exchange in June 2021, and its year-to-date return stands at -18.75%. The company's remained flat at GBX 77.50 on 20 May 2022 at 11:55 am GMT+1.

Gusbourne Plc (LON: GUS)

The winemaker produces and distributes a range of wines across the UK. The group owns 231 acres of vineyards to grow grapes that it uses to produce wines.

Gusbourne Plc’s remained flat at GBX 64.00 on 20 May 2022 at 11:55 am GMT+1, and it currently holds a market capitalisation of £38.88 million.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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