Brexit = Opportunity

At a time when everyone is walking in fear and uncertainty, it takes strength of character to stop, look around,  assess. risk and  with a balanced view;  see opportunity.

Are you up for it?

Let’s toast to that:

Guiness; One of Diageo's powerful brands

Guiness; One of Diageo’s powerful brands

Which top ranked Corporate Social Responsible companies will do well from leaving the EU? Now I am not predicting the future I am stating as I look around today, Tuesday June 28th, 2016, it appears that the UK is leaving the EU.

With that in mind, Diageo is an opportunity. Diageo is ranked #26 in Global 100 Corporate Knights of 2016. It ranks ranks 67th in the Green Ranking Global Top 100 and Barron’s ranks Diageo #46 in its evaluation of the World’s Most Respected Companies.

Diageo is the largest manufacturer of food and beverages in the UK. It enjoys 90% of its sales revenues from outside the UK. Well loved brands like Guiness, Johnnie Walker, Smirnoff…just to name a few are the hallmarks of Diageo’s product lines.

The stock is up since the announcement of Brexit because a lower UK currency will actually help Diageo in the international market. I did some quick math and a lowered currency could grow Diageo’s revenues by about 10-11%. That is an opportunity.

Now there are many other factors regarding companies and their stock’s performance; product quality, customer preferences, marketing, advertising, new entrants, macro factors etc…So this is not a guarantee, it is a balanced perspective of an opportunity for a company that might see double digit revenue  growth if the UK does leave.

The most important message here is that there is opportunity here for UK CSR top ranked companies like Diageo to significantly increase their revenues and that is why the stock rose 5% after the Brexit vote.

Look around – sustainable companies lead to sustainable wealth.

yours in Corporate Social Responsibility

Cara MacMillan MBA

This entry was posted in Opportunity and tagged , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *