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We currently have 23 research reports from 2
A brief year-end trading update with not a huge amount of details. The main point is that post the July 2019 profit warning, the PBT performance through a combination of mix and cost savings has come in towards top-end of market expectations, implying c18% y/y decline. So a c3% beat vs our £36.5m. Revenue decline at -9% however was worse than our -7%. This reflects ongoing challenges with the Rubicon and Rockstar barns and lower Irn-Bru volume due to price realignment. Net, the company had a better H2 than H1 and from our understanding, exits Q4 with good momentum. Looking ahead to 2020, the comps are easier and the company is expected to get back into growth mode (albeit 3% at the PBT level). The main cloud on the horizon is the Deposit Return Scheme for Scotland, and we understand the Scottish Parliament will provide an update on plans in the next few weeks. We view this as short-term negative for AG Barr and hence have a y/y profit decline for FY22. Post today’s update we nudge our current year PBT up by 2% and FY21 by 2% also. There will be some investor relief this morning but given the anaemic growth outlook and ongoing headwinds we feel an FY21 P/E looks full. We stay at Hold.
Companies: A.G. BARR Plc
Lerøy will release its Q2/20 results on Thursday 20 August. We now expect an EBIT of NOK 414m (418) for the quarter vs consensus at NOK 336m. We still advise investors to look beyond the next two quarters, as we see 2021 as a transformational year for the company. The recent years’ smolt investments should trigger volume growth and operational improvements not factored into the current valuation. We stick to our Buy rating and our NOK 65 TP.
Companies: Lerøy Seafood Group ASA
Carlsberg has navigated the COVID-19 crisis well, especially if we compared it to peers. The FY20 guidance implies H2 EBIT lower than in H1, but still in line with the consensus and our expectations. We remain positive.
Companies: Carlsberg A/S
Much has been written about the effects of the virus on the world and on the stock market. Here is one analyst’s take on some of the likely impacts on the way we should look at companies. This article was originally produced as a blog, “10 Changes Post Virus”, which was published a few weeks ago.
Companies: AGY ARBB ARIX DNL GDR NSF PCA PIN PHNX PHP RE/ RECI STX SCE SIXH TRX SHED VTA
Britvic’s revenues for first nine months of 2020 were £1,028m, down 5.1% at constant currency, while Q3 revenue was £329m, down 16.3%, which was in line with company expectations. Britvic gained market share across its business units. As expected, the COVID-19 pandemic caused significant declines in out-of-home consumption, which were partly offset by gains in at-home consumption.
Companies: Britvic Plc
FY20 top and bottom line missed expectations and Diageo didn’t provide guidance for next year. Improvements expected in the coming months thanks to lockdown restrictions easing, though the margin should still be under pressure for the next six months.
Companies: Diageo Plc
Aker BioMarine is the only fully integrated player and has a 70-80% global market share in the Krill industry. We expect an adj. EBITDA CAGR of 38% during 2019 – 2022, which significantly outperforms all its peers. CapEx is set to normalize from 2022 onwards which will boost FCF yield towards 10% in 2022 based on the current share price. We initiate coverage with a Buy rating, and we introduce a target price of NOK 185.
Companies: Aker BioMarine AS
SalMar will release its Q2/20 results on Thursday 27 August. We have implemented the harvest volumes announced on 6 July, as well as average prices for the quarter – some NOK 4.4/kg above our previous assumption. We now expect an EBIT of NOK 865m (672) for the quarter vs consensus at NOK 646m. We still expect SalMar will deliver strong operating performance relative to its peers in Q2/20 and we stick to our Buy rating as well as our NOK 500 target price.
Companies: SalMar ASA
Arnarlax has delivered on its volume guidance since our last update and we believe the probability of additional license awards has increased following the new risk assessment. We see several triggers going forward: i) cost improvements during H2/20, ii) announcement of a smolt strategy, iii) potential license awards and iv) a potential OSE main listing. We stick to our Buy rating while raising our target price to NOK 150 (100).
Companies: Arnarlax AS