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Companies: Greencore Group Plc
Greencore, the major chilled and convenience food producer, issued an unexpected, and so surprise,
statement to the market on the afternoon of the 25 November 2021 that its long standing and highly
respected CEO, Patrick Coveney will be stepping down from the Group in March 2022. Mr Coveney
will be joining SSP as Group CEO following a separate announcement by the business.
Greencore, the leading chilled & prepared food manufacturer, has updated trading for Q3 FY21. In the 13W to the 25 June it reports pro-forma Group sales less than 3% behind FY19 (+1% in June), 53% ahead yoy with food-to-go 9.3% behind FY19, up 91% yoy. Importantly, pleasingly, the Group recorded positive EBIT in Q3. Looking to H2 FY21, despite well-documented and frustrating industrywide operating challenges around Covid, Greencore expects to deliver adj. EBIT of £36-40m, (SC forecast; £38m); we
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
Companies: AMYT ARBB ARW BAG BEG BONH BWNG CWK DNK EML EPWN FBD FA/ GPH GSF GNC HUW IGC INSE KAPE KP2 MMAG NRR NESF OTMP ROL RUA SEN SUR TON TOU TXP TGL VLS WINK
With mobility severely limited, UK food to go sales have experienced challenging times since the start of the Covid crisis; Greencore has not been immune from such pressure. H1 2021 results confirm this, with Group sales down 19% over the 26 weeks to 26th March 2021. Adjusted EBIT was at breakeven. That said, trading has strengthened as mobility increases, with Group sales in the firstseven weeks of H2 2021 down just 5% on pre-Covid level. Net debt (excluding leases) fell £79m to £271m (includin
In the last fortnight, we have surrendered some of the notable progress made over the last three months. That said, the optimism displayed by markets, driven by progress with vaccines and their rollout, persists. The recent direction of markets has been set by volatility in US markets, driven by specific retail market developments. Domestically, we have seen a broadly upbeat procession of results and trading updates/outlooks have, generally, been at least in line. The share price reactions have
Companies: AJIT ARW CEG BVC BAG BEG BON BWNG CLG CRPR EYE ECHO EPWN FDM FA/ GPH GNC HUW INSE KAPE KP2 MNZS NMCN NRR OBD PPC QFI ROL SAVE SCS SEN SOS SUR SNX TON TMG TGL TCN UEM VLS W7L WINK WYN
We highlighted last month the (first) Santa Rally arrived early (unlike some other festive gifts). The second Claus(e) relief rally was prompted by the agreement between the European Commission and the UK on its future cooperation with the EU. Markets also reacted positively to the $900bn stimulus package agreed in the US. While the FTSE 100 and FTSE 250 indices rose by 1.6% and 1.7% respectively on the first trading day after the holiday and the FTSE 100 has recovered 28% from its low point in
Companies: AMYT ARBB CEG BVC BEG BWNG CGI CLG CML EYE ECHO EPWN XPF FA/ GDWN GSF GNC HUW INSE KAPE KP2 NRR NBI NUC OTMP PPC QFI RQIH RUA SAVE SEN SNX TOU TXP TGL UPGS APGEF
Amidst a Covid pandemic that has seen a material contraction in the UK Food to Go (F2G) market (particularly Q2 CY2020), Greencore’s recently reported FY Sep ‘20 results revealed both resilience and the benefit of cash conservation activities. Group liquidity has been further bolstered by a £90m equity raise which, alongside broader refinancing, provides both a buffer against further lockdown activity and the funds to continue to invest to support future growth and efficiency opportunities as th
We remain in the foothills of the Covid-19 lockdown-easing process, but we feel it is already evident that it will take some time for the UK to return to pre-crisis habits, if it ever does! We continue to see home working as an industry feature, shifting calorie consumption from urban centres to suburbs and from the Food & Beverage to the Retail channel; changes where Greencore is not passive, and opportunities prevail to us. As an aide to investors, in advance of resuming our formal forecasts,
Amidst the ongoing COVID-19 crisis, and within the context of a materially smaller UK food-to-go market, Greencore has published H1 2020 results for the 6 months to 27th March. With pro-forma sales flat, and CPTP down c17.5%, the results reflect trading in the early stages of lockdown, and so capture materially slower food-to-go activity and the initial stockpiling in grocery, ahead of any mitigating actions on the cost base. With visibility on the easing of lockdown process still very low, both
Greencore, the leading Irish domiciled food manufacturer that is a major supplier to the UK convenience and supermarket channels has issued an update on the business' progress and current position to the market amidst the current COVID-19 crisis. Greencore states that it is currently trading in-line with prevailing FY2020 financial expectations, ahead of the recent step change in shopper behaviour around the Coronavirus outbreak; the Group has a September financial year-end and so it is approxim
Greencore has reported a solid start to FY2020, with the UK trading environment said to be “challenging” in what is a relatively quiet period for the Group. Total Group revenues increased by 1.8% to £368m, up by 0.7% on a pro-forma basis. Total food to go growth was 4.5%, with pro-forma growth at 0.5% (against a tough 6.4% comparative). ‘Other convenience’ was also in modest pro-forma growth at 0.9% (4.7% comparative). Still early in the FY2020 financial year (Group profitability is H2 weighted)
Greencore’s FY2019 results to the 27th September are in line with our expectations and guidance set out at the Capital Markets Day (CMD) on 26 th September. Pro-forma sales increased by 2.6% (amidst challenging trading conditions), with CPTP up 16% to £92.3m and EPS at 16.0p (SC 15.7p). Group net debt was £288.5m with leverage of 1.8x EBITDA, down from the pre-USA exit of 2.3x for FY2018. Now fully focused on the UK market, and with leading exposure within attractive ‘food to go’ categories, man
Greencore hosted an effective Capital Markets Day in late September which outlined the Group’s evolving strategy and its distinctive and capable business traits, which feed an attractive Value Creation Model. The output of its strategy is expected by management to be mid-single-digit organic top-line growth (4-6%), modest incremental margin gains and the conversion of half of adjusted EBITDA to free cash flow. Capital discipline leads to investment decisions guided by a mid-teens RoIC target. Ba
Greencore, on the morning it will be hosting a Capital Markets Day in London, has issued a brief pre-close statement (year ending 27th September) which confirms it anticipates EPS of c16.0p (in-line with market expectations). We currently forecast 15.7p on the same basis (16.7p applying the post capital return share number of 446m). Pro-forma revenue growth is said to have “improved” through Q4, despite “subdued trading conditions” early in the period. Management has also reiterated that post th
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JOHN MENZIES+ (MNZS, BUY at 315p) – Note Publication: Evolutionary trends…
MARKS & SPENCER+ (MKS, HOUSE STOCK at 253p) Q3 TS – FY22 guidance firmed up, c5% underlying upgrade
NORTHBRIDGE INDUSTRIAL SERVICES+ (NBI, House Stock at 174p) - Further progress in Tasman disposal
BUNZL^ (BNZL, BUY at 2723p) – Note published: Solid strategic outlook
TESCO^ (TSCO, BUY at 292p) Q3 & Christmas TS – a beat to expectations and so further FY22 upgrades (c5%)
HILTON FOOD G
Companies: IDEA BRK ASC PFG MAB HFG TSCO BNZL NBI MKS MNZS
Dekel Agri-Vision has announced strong December 2021 and record full year operational figures which underpin excellent operational and pricing momentum heading into the peak season in January-May 2022. In addition to the recent start-up of the Tiebissou cashew plant, ongoing strength in the core palm oil business should support a re-rating of the stock, especially as operations are continually de-risked and 2022 earnings step up. Reiterate buy.
Companies: Dekel Agri-Vision Plc
What’s cooking in the IPO kitchen?
Genflow Biosciences, a UK-based biotechnology company focused on longevity and the development of therapies to counteract the effects of aging and diseases associated with advanced age intends to float on the Main Market (Standard). The Company will become the first longevity biotechnology firm to list in Europe. Genflow has raised £3.7m in an oversubscribed placing, conditional upon admission becoming effective. The flotation will value Genflow at approximatel
Companies: ZOO AFN ASC CPP FIF PIP
MGC Pharma is a bio-pharma company that develops and produces medicines using compounds derived from cannabis and other plant-based sources. The company has two separate product categories:The first category are ’phytotherapeautics’, health-promoting products derived from plant-based sources. There
Companies: MGC Pharmaceuticals Ltd.
Wynnstay Group (‘Wynnstay’) has today (30 June 2021) issued a very positive set of interim results for the period ended 30 April 2021. The Group’s balanced business model has come to the fore and delivered record HY pre-tax profits. Trading momentum from H2 FY20A across feed and the Specialist Agriculture Merchanting division has continued in H1 FY21A and has been ahead of management and our expectations. Following the outperformance in feed and Merchanting more than offsetting a weaker arable p
Companies: Wynnstay Group plc
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
Companies: AMYT BAG BVC BRSD CLG CML FBD GDWN INV MACF MNZS MIO NRR NSF NBI MATD PREM QFI RUA SCS STVG SUR SNX UPGS VAST VLS
MGC Pharma is a bio-pharma company that develops and produces medicines using compounds derived from cannabis and other plant-based sources. Since our initiation report (June 22, 2021) the company has had several major news announcements, which have contributed to a 49% increase in the share price
Cake Box’s interim results, covering the 6 months to 30th September 2021, capture a period of strong sales recovery, continued double digit LFL franchise sales growth and accelerated franchisee store openings. Profit growth is a very strong at 122% to CPTP of £3.7m, EPS of 7.5p. An interim DPS of 2.5p is proposed, up 35% yoy. We upgrade our expectations post today’s update, raising FY22 CPTP by c8% to £7.0m and EPS to 14.7p. A net cash position of £7.0m is expected. With the potential for c400 s
Companies: Cake Box Holdings Plc
We were impressed with Diageo’s presentation as it once again demonstrated its ability to outperform the spirits market, which is itself in a strong position to outperform the drinks industry. Buy and hold.
Companies: Diageo plc