Event in Progress:
Discover the latest content that has just been published on Research Tree
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 2 research reports from 7 professional analysts.
Companies: A.G. BARR p.l.c.
Shore Capital
Ocean Harvest Technology (OHT) report FY2023 results in-line with expectations. Product revenues of €3.0m grew at 21% versus FY2022A despite an (expected) H2 2023A decline of 7%, and was a function of lower margin single seaweed sales, which can be volatile. H2 2023 OceanFeed blended sales of €1.3m grew at 21% versus H2 2022. The H2 2023 gross margin of 39.5% supported this and showed a sharp acceleration versus the 35.3% seen in H2 2022. 15 new customers were added across FY2023, and with a ver
Companies: Ocean Harvest Technology Group Plc
Cavendish
Companies: Anpario 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
We are reiterating our Buy rating and $0.25 price target for Starco Brands with the company announcing 4Q23 (December) results after the close on Monday. We believe 2024, with a full compliment of unique, value-added brands which leverage Starco's aerosol and marketing infrastructure in hand, and a laser focus on adding key categories and new relationships, is shaping up as another year of material progress for Starco. We believe there are also continued margin expansion opportunities from both
Companies: ELF EL STCB EPC COTY IPAR DGE IPAR EL UNILEVER EPC STCB ELF COTY
Small Cap Consumer Research LLC
AG Barr’s (BAG’s) FY23 results highlighted the strength of the brand portfolio as group volumes (+2.4%) outperformed the UK soft drinks category decline of 2.9%. Key brands IRN-BRU (33% of FY24 revenue) and Rubicon (19% of FY24 revenue) grew 8% and 15%, respectively, as flavour innovation and format mix helped to drive volume growth. Management anticipates margin enhancement initiatives to yield a 100bp operating margin uplift in FY25, aided by greater in-sourcing and other efficiency gains. M&A
Edison
Companies: Wynnstay Group plc (WYN:LON)SDX Energy PLC (SDX:LON)
Companies: Greencore Group Plc
Cyclical weakness in Carr’s Group’s Speciality Agriculture business has affected the company’s fortunes of late. However, the new management team, a strong net cash balance sheet and a record order book in the Engineering division offer optimism. Operational progress, particularly a reversal of fortunes in Speciality Agriculture, should rebuild confidence and a reduction in the current discount to our view of the underlying value.
Companies: Carr's Group PLC
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
Greggs (GRG) enjoyed a stronger-than-expected end to FY23 with sales ahead of our estimates and consensus forecasts, enabling GRG to meet its profit expectations for the year. GRG’s strong revenue growth and an improved profit performance in FY23 means it has fared better than many other consumer-facing names during the year. With lower inflationary pressures, the company enters FY24 in a better place with respect to its selling price versus cost inflation than at the start of FY23, when it was
Companies: Greggs plc
Companies: Genus plc
Liberum
Today's news & views, plus announcements from SNN, DOM, GRI, FTSA, WINE
Companies: Naked Wines plc
Capital Access Group
Better than expected to date: The January trading update season has been better than expected, with the ratio of upgrades to downgrades running at 26:16 out of the 101 trading updates that we have analysed. It’s a surprisingly positive start to the New Year which reflects (1) realistic expectations captured in consensus forecasts, (2) consumers’ determination to enjoy Christmas and protect important areas of personal expenditure and (3) a reduction in supply as competitors exit.
Companies: MORE LGRS MPE MRK MTC RBG MEX ZAM
Share: