Household Goods & DIY equity research

Explore the most viewed and latest equity research and media content for companies within the Household Goods & DIY sector. Stocks in this sector include those who specialise in: decoration, furnishing, durable & non-durable home products, and DIY.

Household Goods & DIY equity research

Explore the most viewed and latest equity research and media content for companies within the Household Goods & DIY sector. Stocks in this sector include those who specialise in: decoration, furnishing, durable & non-durable home products, and DIY.

Latest Content

Breakfast Today

  • 21 Feb 17

"With the US markets closed for a public holiday and little in the way of significant macro data to shape sentiment, yesterday's equity trading in London was largely driven by corporate events. Top of these was Heinz's apparent 'amicable' withdrawal of its approach on Unilever (ULVR.L), although disappointing full year results also knocked Bovis Homes (BVS.L) hard while RBS (RBS.L) shares celebrated the news that its management had abandoned efforts to sell Williams & Glyn. The fact that Unilever shares only gave back half of Friday's gains was testament to the opinion that Heinz, backed by dealmaker Warren Buffett, is considered unlikely simply walk away from a proposal that it will have spent months intricately crafting. So the corporate 'dance' has now moved behind the scenes, with Heinz ultimately wishing to arrive at a recommended merger although it is, of course, is permitted to make another unsolicited approach in six months' time. Meanwhile, there will be the opportunity to trade volatility in both their shares, as contradictory stories inevitably ebb and flow. During this morning's Asian trading, HSBC (HSBA.L) also kicked off the banking sector's reporting season with a drop in pre-tax profits and dividend declaration much as anticipated, although a US$1bn share buy- back following US$2.5bn in 2H'2016 rather disappointed investors. This left the Nikkei leading the regions gains despite the US$ being broadly stronger against all local currencies, while the Hang Seng and Shanghai Composite went in opposite direction and the ASX trod water. Economic releases due from the UK this morning include January Public Sector Net Borrowing followed by a 10:00hrs speech to MPs from The Governor of the Bank of England. The EU is due to provide Markit PMI for February, while the US also details Markit PMI and its Redbook along with speeches from FOMC members Patrick Harker and John Williams. UK corporates due to report also include Anglo American (AAL.L), BHP Billiton (BLT.L), InterContinental Hotels (IHG.L), Galliford Try (GFRD.L) and Wood Group (WG..L). Traders will also be listening out for more news from Greece, which has taken a small but significant step with respect to re-commencing its bailout negotiations as the Greek government agrees with Eurozone Finance Ministers to receive a technical team in Athens. The London equity market is seen opening quietly this morning, with the FTSE-100 expected to be down 10 points or so in opening trade." - Barry Gibb, Research Analyst

Good performance in the quarter; Shavers business remains a concern

  • 20 Feb 17

Bic released Q4 FY16 results broadly in line with our estimates as well as market consensus. Note that management has recently discontinued the operations of the Bic Graphic business and the segmental pro forma information is not currently available. Hence, all numbers in this write-up are used in accordance with the old reporting structure. The revenue at CER came in at +2.3% (vs AV’s estimate: +3.5%), driven by the strong growth momentum in the consumer business (+6.1% vs AV’s estimate: +3.9%; c.84% of Q4 16 sales), but partially offset by the sluggish performance in the Bic Graphic segment (-12.8% vs AV’s estimate: +2%; accounts for c.16% of Q4 16 sales). Within the consumers business, the primary growth contributor was the stationery segment (+7.8% vs AV’s estimate: +3.0%; c.29% of Q4 16 sales), led by a robust back-to-school season in Brazil and South Africa. Moreover, high single-digit growth in North America further underpinned the segment’s top line. The shavers business also performed well at 6.6% revenue growth (vs AV’s estimate: +3.0%; c.20% of Q4 16 sales), driven by the market share gain in Eastern Europe and the LatAm regions (particularly Brazil). The Lighters segment once again showcased a consistence performance (+5.2% vs AV’s estimate: +6.0%; c.32% of Q4 16 sales) on the back of strong growth in the Middle East and Africa. Management has partially completed the strategic review of the Graphic business. From FY17 onwards, the European and developing markets operations (accounts for c.20% of Bic Graphic’s sales) would be integrated within the consumer product business. The decision on the North American and Asian sourcing operations (c.80% of Bic Graphic’s sales) will be announced in the next couple of weeks, and thus the business has been classified as assets held for sale/discontinued operations as on 31 December 2016. Geographically, the entire sales growth during the quarter was attributable to the developing markets region (+8.5% vs Q3 16: +9.2%; c.35% of Q4 16 sales), with Latin America being the key contributor. However, the remaining two regions slipped into the red with North America clocking -1.0% (vs Q3 16: +1.3%; c.45% of Q4 16 sales) and Europe -0.1% (vs Q3 16: +2.6%; c.20% of Q4 16 sales). The reported revenue increased by +3.6% (AV’s estimate: +2.7%) on the back of currency tailwinds (+1.3% vs AV’s estimate: -0.9%). Although the adjusted operating margin was slightly below our estimates (18.3% vs AV’s estimate: 18.8%; higher administrative and distribution expenses), lower than expected tax expense underpinned the adjusted EPS at €1.69 per share (vs AV’s estimate: €1.64). For FY16, management has proposed a dividend of €3.45 per share for FY16 (vs AV’s estimate: €3.50). For FY17, the company expects organic revenue to grow in mid single-digits and the adjusted operating margin to decline by 100bp (due to planned investments in R&D, brand support and capex).

Breakfast Today

  • 13 Feb 17

"Like magic, Donald Trump has pulled the next rabbit out of his hat, promising a 'phenomenal' corporate tax announcement in the next 'two or three' weeks. Its likely to come with his February State of the Union Address to Congress on 28th February, but investors are not seen having the patience to wait for the formal pronouncement. A steadier, but still rather shell-shocked, Euro permitted oversold French bonds to rally, having been preceded on Friday by news from China that its January exports rose 7.9% on last year accompanied a 16.7% leap in imports, which altogether was enough to power all three principal US indices to new record highs having already been boosted by a flow of strong corporate earnings releases. European politics, of course, remains the obvious 'fly-in-the-ointment', with most pundits now seemingly resigned to France's National Front leader, Marine Le Pen, succeeding to May's Presidential run-off. This, however, along with the undoubted complications faced in driving the President Trump's reflationary proposals through Congress, appears to have been temporarily pushed to the back of investor's minds, with early morning trading in Asia firmer right across the board, having had nerves calmed by President Trump informing Xi Jinping that the US would respect his 'One China' policy while also welcoming Japan's Abe to the White House. This leaves Europe simply to follow suit this morning, with all markets expected to open firmer once again. Macro releases due to today are few in number, with nothing coming from the UK, while Germany produces just its Monthly Buba report and the US details the outcome of its 3 and 6-month Bill Auctions. No significant UK corporate earnings or trading updates are due either, although some second-liners like Fidessa Group (FDSA.L), Lok'n Store Group (LOK.L), Plastics Capital (PLA.L) and Surface Transforms (SCE.L) are scheduled, which leaves London to just follow the international lead with the FTSE-100 seen rising between 10 and 15 points in early morning trade." - Barry Gibb, Research Analyst

 

Providers

30 Providers with research from over 351 professional analysts