Today's news & views, plus announcements from ICP, BATS, OXIG, PAG, NCC, OTMP, XPD, PPC
Companies: BATS OTMP XPD
Strong trading update with upgraded FY21 revenue growth target (+5% vs. +3-5% previously) and strong confidence in the New Generation Products development.
Companies: British American Tobacco p.l.c.
Good full-year results, which beat top- and bottom-line expectations. However, the FY21 cautious guidance weighs on the stock today.
H1 combustible resilience and surprising improvement in the New Categories unit (vapour, THP, modern oral). We continue to be positive on the stock.
FY20 guidance cut mainly due to a slowdown in emerging markets. This is rather disappointing as we were more confident in the operational resilience of the group.
In an industry that remains resilient during the COVID-19 crisis, BAT joins the virus vaccine race, (paradoxally) boosting its ESG credentials.
BAT held its CMD on 18/03/2020. No change in our confidence following the event. The company continues to show strength in its combustible activity vs. the industry and, while the New Categories business has been showing some weaknesses lately (US slowdown, regulations), we still believe that it will be the growth driver in the future. At the moment, it seems that BAT is succeeding in offsetting the vapour slowdown with its ability to transfer smokers to premium cigarettes. The FY20 outlook is u
BAT reported FY19 results close to the consensus and our estimates given it had provided an update in late November. No surprises in the FY20 outlook either, while FCF remains resilient. No change in the New Category products revenue target (£5bn in 2023/24), which is quite reassuring in the current destabilised environment.
Despite the warning of a slowdown in the New Category products, the company has continued to show strength in its combustible activity (highly positive in the US too). The “warning” concerning the FY New Category sales doesn’t imply a significant revision in our estimates. All the group level guidance was reiterated. It seems that BAT is succeeding in offsetting the vapour slowdown with its ability to transfer smokers to premium cigarettes. Our Buy recommendation is maintained.
While Altria’s results at the beginning of the week did not reassure, BAT reported pleasing H1 results. The numbers were in line with the group’s guidance and beat consensus estimates on the major metrics. While the cigarette volume fell, the strong pricing drove up the top-line and profitability.
Satisfying FY18 results for a company in a decreasing industry. The FY18 numbers were actually much helped by the total inclusion of Reynolds American. However, the lack of details concerning the FY19 guidance failed to stem our concerns on the medium-long term outlook.
H1 update: revenue at constant FX and representative basis was up +1.9% (in line with consensus). On reported figures, sales were up +56.9% (including Reynolds). At constant FX and representative basis: cigarette volumes were down 3.1% whereas THP volumes were up 855% (which translates into the overall combustible volumes of -2.1%). Vapour device volumes were up +16.5%.
The revenue from the strategic portfolio (strategic cigarettes, NGP, oral) was up +8.5% at constant FX and representative basi
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Sosandar’s FY21 results have been well-trailed with revenue growth of 35% to £12.2m and a reduction in EBITDA losses to £2.9m (PY: £7.7m). The accelerated growth seen in Q4’21 has continued into Q1’22, with sales increasing 256% YoY and the gross margin expanding 200bps QoQ. With restrictions easing, we envisage a continuation of growth in FY22 coupled with a reduction in EBITDA losses (breakeven in H2). May’s £5.8m (gross) ABB has provided the working capital to support a significant increase i
Companies: Sosandar Plc
A new partnership with Alshaya Group in the Middle East, building on Debenhams established store presence in the region, the launch of a new local Debenhams eCommerce platform and providing a new route to market for the Group’s existing portfolio of brands.
Companies: boohoo group Plc
Companies: Ted Baker PLC
Q2 results were roughly in line with expectations. With little surprise, the FY21 margin outlook was cut given the price uncertainties of the raw materials. This is the first bad signal for the sector.
Companies: Unilever PLC
Companies: Frontier Developments Plc
Despite the adverse effects of Covid lockdowns significantly impacting Q1 FY2021, Victoria has delivered record FY2021 revenues and adjusted EBITDA, respectively c.3% and c.6% ahead of expectations set by its June trading update. The outlook for revenue and margins in FY2022E is encouraging with the Group continuing to experience strong on-going demand in its key markets, having captured structural margin uplift from targeted productivity and operational initiatives. Whilst traditional lead indi
Companies: Victoria PLC
Under a new and experienced leadership team, BAR delivered several key milestones in Jun’21. The result is a scalable and efficient beauty brand specialist with enhanced operating disciplines to drive profitable future growth in what could be an exciting expansion phase. There was an inflection to sales growth and higher margins in H2 despite covid disruption. This is an exciting moment for BAR with 7 imminent brand relaunches, major DTC projects from Q2 onwards, and cash to deploy on accretive
Companies: Brand Architekts Group plc
Although renewable energy has been gaining increasing traction over the past decade as the costs of renewable energy generation and perhaps more importantly, energy storage have fallen, 2020 was a seminal year for transitional energy investors driven by governments seeking to “build back better” after COVID-19. The US has committed US$2.25trn largely focused on the energy transition while the EU has committed US$0.54trn with companies around the world including China committing to net zero targe
Companies: LAM FSJ TGP PRES JMAT CRPR NEXS VLX
Galliford Try has again demonstrated strong progress against its growth and recovery targets, with PBT set to come in “towards the upper end of analysts' current range [of forecasts]” – currently £9m-£11.2m. Management confirmed that all sites are progressing in line with its medium-term EBIT margin target of 2.5%
Companies: Galliford Try Holdings PLC
Catena Group (CTNA.L) to complete reverse takeover and be renamed Insig AI and is acquiring the remaining shares of Insight Capital Partners. Insight, which is based in the UK, is a data science and machine learning solutions company that provides bespoke web-based applications, advanced analytical tools and modern technology infrastructure to make machine learning accessible to investment professionals. Insight has developed five products specifically aimed at accelerating an asset manager's d
Companies: SWG LOGP G4M SDG MTL GTC KWS ARK ANCR EME
Companies: Accrol Group Holdings plc
Today’s H1 update makes positive reading. Since the AGM update, strong trading continued into May and June and the Group exits H1 with a strong global order book. Overall, 34% y/y sales growth / 6% LFL (vs H1-19) is a highly impressive outcome against the backdrop of UK lockdown 3.0 and ongoing CV19 related global shipping and supply chain delays. All this reflects favourably on the strategic progress under the new leadership team and supportive of the double-digit sales / margin recovery thesis
Companies: Portmeirion Group PLC
Mercedes-Benz presented its new electrification strategy, which entails accelerating the pace towards an EV-only future. While the 2030 target for full electrification has a caveat depending on a swift adoption of EVs across the globe, the plan presented appears quite sound and bold enough to keep M-B in the race for dominance in the premium EV space. All this while sticking to its financial targets presented last October.
Companies: Daimler AG
Boohoo Group plc has announced a solid set of results for the full year ended 28 February 2019, ahead of our forecasts which were revised higher in January. In recent years the boohoo group has transformed from a single branded e-commerce player into a scalable multi brand platform with proven ability to execute rapid growth. Its disruptive model, centred on a customer led proposition with strong social media engagement is enabling it to take market share from its competitors. The Group’s well-i
Boohoo Group has announced a solid start to FY20 in its Q1 trading statement released this morning. Revenue for the Group is up an impressive 39% YOY to £254.3m, ahead of ZC expectations (+32%) and market consensus (+35%), and against strong Q1 FY19 comparatives (+52%). There was growth across all brands and regions, with the Group continuing to take market share. This positive performance reflects the relevance and strength of the Group’s proposition, further evidenced by it topping the UK Hitw