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Heineken’s Q3 sales were slightly below the market’s expectations, with consistent pressure on volume, especially in Europe due to the unfavourable weather conditions, as well as in Africa. However, following the profit warning during the H1, the reiteration of the outlook was welcome. While we do not see a positive catalyst in the short term, the downside risks are limited given the recent share price underperformance and the stock’s current PE.
Companies: Heineken NV
AlphaValue
In H1, Heineken’s performance was disappointing, with almost every metric falling short of expectations. The company’s strong pricing power had a negative impact on consumer demand in all regions. Vietnam and Nigeria accounted for over half of the decline in first-half consumption. As a result of this performance, the FY outlook has been revised downwards.
Heineken Q1’s trading update missed the consensus on volume and revenue, but the market welcomed the strong price mix during the quarter (+12.1%). Asia and Africa volumes were weak (Vietnam and Nigeria), but Americas reassured, as did the reiteration of the FY23 guidance.
We had expected to be disappointed but ultimately were not. The FY22 figures turned out to be slightly better than expected and Heineken reiterated its forecast of a profit increase this year despite weakness in Europe.
The Q3 earnings miss has weighed on the stock this morning. The cautious tone adopted by the company was not a surprise for us and, on the contrary, we see some positives in the publication.
A very good performance with a consensus beat on every line of the P&L, but not strong enough to offset the company’s cautious tone and revised guidance for FY23.
HEICO Corporation is a large aerospace and defense company based in Florida, U.S. The company had a strong start to 2022 with net sales for the Flight Support Group showing a phenomenal growth in revenues as well as profitability. The company’s commercial aerospace parts and services has been experiencing strong organic growth and its operating margin has been expanding. The company has seen an improved gross profit margin brought on by the higher net sales volume across all product lines. Among
Companies: Heineken NV (0O26:LON)HEICO Corporation (HEI:NYS)
Baptista Research
This is our first report on aerospace and defense player, HEICO Corporation. The company delivered outstanding results for the most recent quarter with operating income and net sales for the Flight Support Group reporting quarterly increases of 87% and 33%, respectively, compared to the second quarter of fiscal 2022. The company’s commercial aerospace parts and services experienced strong quarterly organic growth of 31%. The Flight Support Group has also experienced sequential growth in operatin
The Q1 volumes beat expectations and net revenue was driven by an impressive price-mix that, for now, has not impacted volume growth.
Good FY21 results beating expectations. FY22 outlook not so bad, slightly below current expectations but, in the end, it can be interpreted as quite well after the “catastrophic” guidance from say Unilever. The black spot is on the uncertainties regarding the 17% EBIT margin target for 2023, but more information will be available later in the year.
We welcome Heineken’s latest (major) deal in South Africa and Namibia, which should strengthen its position on the African continent and reflects an ever-growing appetite for external development.
Meaningful Q3 volume miss and lack of information/guidance regarding the end of the year/inflation. Negative read-across with Carlsberg looking at the Asian situation. A publication that does not set a very good tone for the brewers’ future.
Better-than-expected Q1 volume, suggesting that the recovery is on track, at least in North America and Asia. Europe should continue to be the main drag in Q2, while market conditions are expected to improve gradually in H2.
Missed FY20 results and cautious FY21 and mid-term guidance. Rather disappointing, especially after Carlsberg’s relatively good results last week, but they certainly reflect the different geographic and on-trade exposure (to the disadvantage of Heineken).
Q3 comfortably beat the consensus volume expectations, but the directional-only guidance doesn’t give any visibility. Q4 will remain challenging.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Heineken NV. We currently have 120 research reports from 7 professional analysts.
Carr’s Group has announced an updated strategy that offers the potential for value realisation and creation from a number of avenues. These include: value realisation of the Engineering Division; the ability to significantly reduce central costs; and longer-term value creation in the Agriculture Division as a focused business with recovery potential and a strategy to leverage its strong market positions for growth.
Companies: Carr's Group PLC
Edison
FY23 results are much in line with overall expectations, helped by a much stronger H2 production and higher purchases of independent crops helping to fill the group’s rising mill capacity. A marginally higher than expected average CPO price mill-gate price of $729/tonne drove the revenue outperformance, but the change in production mix impacted gross margins while slightly higher than anticipated interest, tax and minority charges resulted in EBIT, PBT (Adj.) and EPS (Adj.) just below our foreca
Companies: M.P. Evans Group PLC
Cavendish
Companies: Anpario plc
Shore Capital
The second full year of Greggs’ five-year growth plan to double revenue by FY26 should be marked down as very successful, especially so given the challenging external environment. Unlike many consumer-facing companies, high selling price inflation was accompanied by volume growth, leading to good market share gains. The consumer is responding well to new initiatives to grow revenue in new dayparts and digital channels. Profitability was well-managed with better recovery of input cost inflation t
Companies: Greggs plc
The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (
Companies: TXG NDVA TSVT BCOW Z29 TXG NCYT GNS SUN AMS OMG APH EKF EAH IMM AGL DEMG AGY TSTL IPO GDR ETX TRX HVO CTEC AVO OXB DEST VLG IXI VAL INDV AGR AVCT BAI 123F IMCR BCOW
Hardman & Co
Companies: RNWH QED GRG PEBB FDM OTB LAND BOO
Ocean Harvest Technology (OHT), based in the UK, produces animal feed additives products using a composite of blended seaweed. Its patented products have been shown to enhance growth rates in livestock, increase feed efficiency and improve egg quality and quantity for laying poultry. As OHT operates in an attractive market, there is significant potential for its proprietary technology to drive volume growth as awareness of its product benefits increases, along with improving financials.
Companies: Ocean Harvest Technology Group Plc
Companies: CLA VAST CMET SRB CEY TGR
SP Angel
20th March 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object
Companies: CTL EKF IQG ANP SML VRS EQLS POLB
Hybridan
Companies: MPE ING EXR
Companies: Premier Foods plc
Companies: FOUR MPE RCN
Companies: OHT TIDE ELCO TSTL VEL BBSN
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