Staple Retail equity research

Explore the most viewed and latest equity research and media content for companies within the Staple Retail sector. Stocks in this sector provide goods and services in the food wholesale and drug retail industries.

Staple Retail equity research

Explore the most viewed and latest equity research and media content for companies within the Staple Retail sector. Stocks in this sector provide goods and services in the food wholesale and drug retail industries.

Latest Content

Greggs

Greggs - Accelerating sales growth

Greggs’ trading update for the first six weeks of Q419 highlights an improvement in sales growth. Like-for-like (l-f-l) sales growth of 8.3% follows 7.4% in Q319 and is against a tougher comparative, allaying fears about Greggs’ sales momentum. We upgrade our l-f-l sales forecast for FY19 by 70bp to 8.6% growth, which feeds through to PBT forecasts increasing by 4.6% in FY19 and 2.8% in FY20. Our DCF-based valuation increases to 2,091p.

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  • 12 Nov 19
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Carrefour

No big surprises in Q3

Carrefour’s Q3 19 performance was slightly below our expectations. While the rebound in the Spanish operations and strong gains in LatAm were encouraging, management needs to do more to revive ailing businesses – French hypers, Italy and Belgium. Q4 19 should see a slightly better performance due to easier comparables. We will tweak our financial estimates but maintain the positive stance on the stock.

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  • 31 Oct 19
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METRO

Decent Q4 results; shuffling at top posing higher risk to performance

Despite the decent Q4 performance, the shuffling at the top has raised fresh questions about the revitalisation of top-line performance and the successful implementation of operational efficiency plan. While the domestic performance is still in the black, management needs to address multiple pain-points for sustained top-line growth. We take a cautious stance on the future performance of the stock, although the positive recommendation is maintained.

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  • 29 Oct 19
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Jeronimo Martins SGPS

Q3 results – robust performance, once again

Jeronimo Martins posted Q3 results slightly ahead of our estimates. While the Polish performance was robust again, deflationary conditions and strong comparables moderated the growth in the Portuguese retail format Pingo Doce. We expect the Q4 lfl growth to soften slightly. The profit margin is estimated to remain flat in the forecast years. We will improve our estimates slightly.

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  • 24 Oct 19
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Casino Guichard Perrachon

French sales below expectations; turnaround performance on track

Casino’s Q3 19 performance was slightly below our expectations. While LatAm remained strong, the French premium banners once again struggled to remain in the black (same store sales basis). Management’s reasoning of a tougher comparable base answers our apprehensions partially. Having said that, we remain confident in Casino’s capability to achieve its near-term guidance – French performance and debt reduction. We will tweak our estimates slightly downwards.

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  • 22 Oct 19
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Tesco

H1 results: gaining strength with time; CEO to leave next summer

The H1 performance was better than our expectations – top-line was soft but operating profit outperformed. Management has announced an overhaul of the Polish operations (after scaling down the business). The discount format Jack’s is producing mixed results, although the CEO is optimistic for its future. Dave Lewis will be leaving Tesco next summer (due to personal reasons). Kevin Murphy, whose recent stint was with Walgreens Boots Alliance (as the Executive Vice President and Chief Commercial Officer), will take the helm.

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  • 06 Oct 19
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Tesco

Preview – Tesco's H1 results tomorrow

Tesco is due to release its H1 results tomorrow. In addition to the company’s performance in the UK, it will be interesting to hear management’s commentary on two hot topics: its discount format Jack’s and the strategy in Poland.

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  • 02 Oct 19
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Greggs

Greggs - Continued strong like-for-like sales growth

Greggs’ trading continues to be impressive, with better-than-expected like-for-like revenue growth in Q319 of 7.4% (against tougher comparatives) offset by lower-than-expected new space growth. In aggregate, trading is in line with expectations, therefore our forecasts and valuation are unchanged.

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  • 01 Oct 19
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Ocado Group

Ocado still going strong

Ocado’s sustained top-line momentum is encouraging considering its recent hiccups (the fire at Andover) and the sales headwinds faced by major UK grocers. We also note management’s optimism from the recent on-boarding of M&S in the retail business (and the decision to use this brand as a substitute for Waitrose). We maintain our positive stance on the stock.

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  • 27 Sep 19
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Casino Guichard Perrachon

Casino marching ahead

Casino’s Board made a few positive announcements yesterday, following which the stock price ended the day 9.2% higher. Launch of second phase of the asset disposal plan and further simplification of the organisational structure in LatAm is likely to boost management’s credibility as well as investors’ sentiment. We reiterate our confidence in the company’s ability to turnaround the business (especially in France). Positive view maintained on the stock.

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  • 21 Aug 19
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