Staple Retail

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

Latest Content

Mccoll'S Retail Group Ryanair

Breakfast Today

With second quarter corporate earnings presently the principal driver of US equity sentiment, traders were taking not taking any big bets yesterday. The major averages closed mixed, with both the Dow Jones and S&P-500 fractionally in negative territory despite firm Financials, following disappointing existing home sales data and weak Oils while still smarting from Friday's disappointing reports from General Electric and EBAY; the NASDAQ by contrast held on to a modest gain as techs found buyers ahead of Alphabet's release post close. Emerging from the OPEC meeting, WTI crude prices advanced slightly for the first time in three sessions, up 0.6% to US$46.64 during the session, as news that Saudi Arabia had agreed to limit its exports to 6.6m bbl/day and Nigeria planned to restrict production emerged, although this move was not sufficient to significantly rally quoted oil majors in a market that traders believe still remains oversupplied. They also remain nervous ahead of Donald Trump's son-in-law, Jared Kushner, facing a second day in front of the Senate Committee today; while he denied any "improper contacts" or colluding with Russia in an 11-page written statement, many believe his grilling simply adds further downward pressure on an already tumbling US$ which, in turn reflects of the President's declining credibility and inability to deliver on 'market friendly' campaign pledges. Diverting attention from politics, however, this week's slew of scheduled results includes Caterpillar, General Motors and McDonald's today, followed by Boeing, Coca-Cola, Facebook and Ford on Wednesday, before Twitter, Amazon and Intel report on Thursday. Alphabet itself produced more consensus-beating revenue and net income numbers late yesterday and although seemingly taking the EU's giant US$2.7bn fine in its stride, the shares still traded down 3% in the after-market on fears that rising traffic acquisition costs could slow ad revenues. The scheduled FOMC meeting that starts on Wednesday is not expected to light any fireworks; Janet Yellen's semi-annual testimony has already taken the heat out of any near-term rate move expectation although, as always, traders will scrutinise the accompanying statement for any hint of change to existing expectations of 'gradual tightening' given four consecutive months of dull inflation numbers. Having trended higher in recent sessions, Treasuries yesterday saw modest weakness, taking the yield on the benchmark ten-year notes up by 1.8 basis points to 2.250%. Asian markets were mostly mixed to fractionally down late in their early morning session on Tuesday. The S&P/ASX 200 stood out, however, staging a reasonable rebound boosted by Financials and Oils having been sharply down yesterday, while just about all other local bourses saw low volumes despite Monday's injection of liquidity from China's Central Bank. European stocks fell Monday, setback early on by the EU Composite PMI Index falling to a six-month low of 55.8 against expectations of 56.2. Shares of German auto makers were also all distinctly weaker following a report that Volkswagen had asked Europe's antitrust watchdog to investigate decades of coordination efforts by the country's manufacturers amid growing concern they might have jointly breached antitrust regulations. Although Financials ended firmer, Ryanair (RYA.L) results spurred another spate of Airline sector profit-taking as analysts raised concerns of looming industry overcapacity leading to more intense ticket pricing pressure. The STOXX Europe 600 was off 0.24%, with the Xetra Dax off 0.25% standing out as the region's biggest loser while the FTSE MIB rose by 0.59%. London's FTSE-100 ended off 1% under similar pressure from Airlines, Oils and Consumer stocks after giant Reckitt Benckiser (RB..L) reduced its annual net revenue target. The UK today releases its CBI Industrial Trends Survey for July, while MPC Member Andrew Haldane is also due to make a speech. Nothing is expected from the EU, but the US is due to provide a good batch of numbers, including its weekly Redbook Index, the S&P/Case-Shiller Home Price Indices for May, the Richmond Fed Manufacturing Index for July and API Weekly Crude Oil Stock numbers. UK corporates due to report earnings or trading updates today include Provident Financial (PFG.L), Croda (CRDA.L), Fevertree Drinks (FEVR.L), Virgin Money (VM..L), Domino Pizza Group (DOM.L), and Fuller Smith & Turner (FSTA.L). Having been hit hard relative to its Continental peers yesterday and with Oils likely to recoup some of their losses as traders reflect on yesterday's OPEC announcement, London is likely to rebound somewhat this morning, with the FTSE-100 seen rising around 35 points in early trading.

View

25 Jul 17
-
-

ACSOPCFIQEEMRBLTGTSTLCLIGULVRCVRSFE

Tesco

Good Q1 results; consistency is the key

Tesco reported a sixth consecutive quarter of organic growth in Q1 FY17 (trading update). Lfl sales increased by 1% (vs consensus: +1.6%), largely due to strong demand emanating in the UK (+2.3% lfl; 1.6% volume growth in fresh food with a significant market outperformance). However, International sales slumped 3% organically, largely due to the discontinuation of unprofitable bulk-selling activity in Thailand (-0.6% impact on group lfl, -2.7% on International operations and -5.8% on Asia). Reported sales were up 3.6% (vs Q1 FY16: +1.8%); the -0.2% scope impact was more than offset by FX tailwinds (+2.8% yoy). The company continues to implement the £1.5bn cost saving plan. The closure of two depots (Welham Green and Chesterfield) was completed in March and April 2017, respectively. The UK opticians business was sold in April (with efforts focused on the core business) and a new partnership was announced with Dixons Carphone – trial of Curry’s PC World outlets in two of Tesco’s larger stores to repurpose space. Management confirmed no further capital gains tax is payable in Korea and, hence, the currently held provision of £329m will be released. It also remains confident it will outperform the market and keep prices at bay in the remainder of the year.

View

18 Jul 17
-
-

Conviviality

Strong FY17 results ahead of expectations, integration on track and confident outlook

Following on from the positive trading update in May, Conviviality today reports a strong full year set of results. Group sales increased 85% YoY to £1,560m, while adjusted EBITDA doubled to £60.9m, 5.2% ahead of our forecast of £57.9m. Adjusted PBT increased 111% to £45.8m, and adj. fully diluted EPS of 21.0p was also ahead of our forecast of 20.2p. FY17 was a transformational year for Conviviality and significantly the integration of the recent acquisitions are running ahead of plan. Management remain confident in the outlook for the business, reflected by the 33% increase in the full year dividend to 12.6p that is covered 1.7x, as well as increased guidance on synergies in FY19.

View

17 Jul 17
-
-

Carrefour

Good Q2 results; focus shifts to the new CEO

Carrefour reported Q2 FY17 trading numbers slightly ahead of street estimates. The lfl sales – excluding petrol and calendar – increased 2.8% (vs Q1 FY17: +1.4%, Q4 FY16: +2.9%), largely due to favourable weather conditions and strong promotional activity in Europe. France clocked strong revenue growth of 1.9% (vs Q1 FY17: +0.5%; contributes c.47% of group revenue), on the back of improved performance across all formats. Notably, the hypermarket stores returned to positive territory in the quarter (+0.5% lfl). Other European countries also held up well at 3.4% (vs Q1 FY17: +0.9%; contributes c.25% of group revenue), aided by robust growth in Spain (Q2 FY17: +2.6%, Q1 FY17: +0.3%), Italy (Q2 FY17: +3.9%, Q1 FY17: +1.6%) and Belgium (Q2 FY17: +2.4%, Q1 FY17: -1.8%). In the rest of world, the top line surged by 3.4% (vs Q1 FY17: +3.2%; c.28% of group revenue). Note that sales figures for Brazil (Carrefour’s second largest market after France) were not disclosed since its listing process is underway. Reported sales were up 6.1% (vs Q1 FY17: +6.2%, market consensus: +4.9%), underpinned by a positive scope impact (1.3% yoy) and FX tailwinds (1.8% yoy; largely due to the appreciation of the Brazilian real vs the euro). Management has reiterated FY17 revenue guidance of 3-5% at CER basis. Profitability details will be shared during the H1 results on 30 August 2017.

View

13 Jul 17
-
-

EUSP CIN JWNG CFHL SOLG BOK FFX EDL BRD SIM

Small Cap Breakfast

ltus Strategies—African focused natural resource Company. Offer TBC. Expected Mid July. Harvey Nash Group— Provider of professional recruitment and offshore solutions moving to AIM from Main. No capital to be raised. Mkt Cap c. £57.8m. AnimalCare—RTO of Ecuphar NV, a European animal health company. £30m raise. Ecuphar FY16 rev £68.4m, underlying EBITDA £8.9m. Due 13 July. Angling Direct -Schedule 1 from the specialist fishing tackle retailer in the UK . Raising £9m of which £7.4m new money. Mkt cap c. £27.4m. Due 13 July NEXUS Infrastructure—Offer TBA. Provider of essential infrastructure services to the UK housebuilding and commercial sectors. Expected 11 July. FYSep16 rev £135.7m. Tatton Asset Management –Sch 1. Provider if services to FCA authorized financial advisers. Raising £10m at 156p. Secondary offer £41.6m. Due 6 July. Greencoat Renewables - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland. Offer TBC. Due Mid July. QUIZ— Omni-channel fast fashion womenswear Company intention to float. Due July 2017. Offer TBA I3 Energy –Schedule 1 Update. Independent oil and gas company with assets and operations in the UK. Offer TBC, Mid July admission. Verditek— Sch 1 update. The Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission late June Rockpool Acquisitions—Northern Ireland based Company seeking strong NI acquisition with an international outlook. Raising £1.5m at 10p. Due 5 July. Hipgnosis Songs Fund investment company offering pure-play exposure to Songs and associated musical intellectual property rights. Prospectus yet to be published. Impact Investment Trust—Exposure to a diversified portfolio of funds providing SMEs across developing economies with the growth capital they need to have a positive impact on the lives of the world's poorer populations. Raising up to $150m at $1.00 Residential Secure Income - social housing REIT raising up to £300m Admission due c.12 July. Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. Kuwait Energy— has not been able to complete its initial public offering as announced in its Intention To Float of 3 May 2017. However, in light of positive feedback from potential investors, the Company remains committed to obtaining a London listing and continues to explore its options.

View

05 Jul 17
-
-

Crawshaw Group

Crawshaw shares fall as sales slide

Group sales jumped 5.1% for the period, but fell on a like-for-like basis, with trading performance "stable"

View

28 Jun 17
-
-

Greggs

Food on the Growth Path

Greggs (GRG LN, N/R) senior management team of Roger Whiteside (CEO) and Richard Hutton (FD) presented to Whitman Howard’s UK equity salesforce yesterday. While Gregg’s differs from mainstream sandwich manufacturers because of its extensive retail network the central message for the Food on the Go/Food to Go was clearly positive. Greggs itself benefits from outlet expansion, discrete new product development and a clear commitment to product quality. Financially, the company appears well placed to deliver on further cost control and free cash flow generation.

View

23 Jun 17
-
-

METRO

H1 16/17: soft numbers and the demerger ahead

Sales in H1 16/17 reached €12,151m (+0% -0.1% at CER and +0.1% lfl), EBIT before special items €289m (-15.5%), net result before special items €146m (-30%) and net profit €122m (-37.5%). These numbers do not include discontinued operations (net profit down from €349m to €249m). Net debt at the end of H1 was €-0.7bn (i.e. a net cash position) vs €0.1bn in Q1. For the full-year, the group anticipates a slight rise in sales in continuing operations despite the “persisting challenging economic environment” and a slightly better performance. Note the activities of the METRO Cash & Carry and Real sales lines as well as the associated management and service activities are shown as “discontinued operations” and, as such, are no longer integrated in this outlook. As a result, the forecast will be adjusted as it now relates exclusively to the continuing operations of Metro Group.

View

31 May 17
-
-

Conviviality

N+1 Singer - Conviviality - Raising a glass to a positive YE update

Conviviality’s YE update is on the whole positive. In a year when it has to do a lot of heavy lifting corporately and in driving cost synergies, it’s delivered strong financial metrics. Notably, >40% EPS growth; cracking LFL’s of 6.4% in the Direct division; Retail moving into positive LFL’s in H2; and net-debt lower than our forecast. So in short, delivering against strategic plan in both the on and off trade. Looking forward, the business has good momentum going into FY18 and further cost and sales synergies to capture. The only disappointment this morning is that there is not a beat in terms of EBITDA and EPS outcome for the year, with management guiding to an in-line outcome. This implies c.3% downside to our FY17 and FY18 EPS forecasts to bring us closer to consensus. The shares have had a great run, but given the trading and strategic momentum we feel an FY18 P/E of 14x is not overly expensive. The c.4% yield is also attractive. Using a SOTP analysis, we lift our 12m TP from 290p to 350p. Whilst the best of the share price outperformance is behind us, we stay at a Buy on a 12m view.