The FY18 performance was in line with the street’s expectations. The key highlights were an increase in the special dividend and healthy free cash flows. However, lower capex in FY18 is attributable to the delayed timing of some investments and management expects higher cash outflow in FY19. We believe the company will remain healthy and well-equipped to sustain this performance (positive lfl and preservation of profit margins). No changes to our stock recommendation.
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No surprises in the preliminary results
- Published:
14 Mar 2019 -
Author:
Nishant Choudhary -
Pages:
3
The FY18 performance was in line with the street’s expectations. The key highlights were an increase in the special dividend and healthy free cash flows. However, lower capex in FY18 is attributable to the delayed timing of some investments and management expects higher cash outflow in FY19. We believe the company will remain healthy and well-equipped to sustain this performance (positive lfl and preservation of profit margins). No changes to our stock recommendation.