Diageo PLC on Thursday announced the commencement of a planned share buyback programme worth up to $1.0 billion, to be completed by the end of its current financial year.

Shares in Diageo were up 1.1% at 3,129.50 pence in London on Thursday morning, giving a market capitalisation of £70.37 billion.

The London-based brewer and distiller first announced the programme in early August, alongside its final results for the financial year that ended June 30. Pretax profit had increased by 8.0% to £4.74 billion, while sales rose 4.8% to £23.52 billion.

The new buyback will be managed by Merrill Lynch International. It will start on Thursday and run until June 26, 2024.

Diageo, which owns various drink brands including Baileys, Smirnoff and Captain Morgan, had previously returned around £500 million to shareholders during the second half of financial 2023.

The brewer currently has authority to repurchase up to 224.7 million shares, which would be worth £7.03 billion at the current market price.

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