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

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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Greggs

Greggs - More than just the vegan-friendly sausage roll

Greggs’ interim results highlighted that the consumer is responding well to the company’s transition to a leading food-on-the-go retailer. This has led to record revenue growth and a step change in gross margin, as well as enabling further investment to fund future growth initiatives, while funding a special dividend as expected. Our forecasts are broadly unchanged following four upgrades in six months.

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  • 06 Aug 19
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Carrefour

No surprise in Q2

Carrefour reported Q2 results in line with our estimates. Lfl revenue growth was once again driven by LatAm and a sequential improvement in France. The recurring operating profit (at constant exchange rate) also grew by 4.5%. While the performance turnaround plan largely remains on track, some European countries (Italy, Spain and Belgium) still need overhauling. Expect minor changes in our financial estimates.

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  • 02 Aug 19
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Casino Guichard Perrachon

Another decent performance

There were no major surprises in the Q2 results. The underlying performance remains on the right track in both operating geographies (LatAm and France). Management has confirmed FY19 financial guidance. The French net debt reduction target has been improved further to less than €1.5bn by end-2020 (vs €2.9bn at 30 June 2019), and this should be sustained at this level in subsequent years. No change to our stock recommendation.

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  • 30 Jul 19
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Jeronimo Martins SGPS

First read: good performance continues in Q2

JM’s Q2 performance is better than our expectations. Strong top-line momentum was witnessed across all operating banners (lfl basis). The EBITDA margin has also improved slightly (vs a 10bp decline in Q1), resulting in flat profitability in H1 FY19. More details after the conference call but we expect to increase the financial estimates.

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  • 26 Jul 19
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J Sainsbury

Weak top line still an issue

Despite a weak start to the year, management is trying to revive consumer demand. This includes steps like investing in essential goods and groceries. While it is a positive step, much more needs to be done. Confirmation of FY19 PBT consensus is a comforting factor. No change in stock recommendation.

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  • 18 Jul 19
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Ocado Group

Moving ahead slow and steady

Ocado managed to clock a healthy top line but EBITDA was below our expectations in H1 19. Going forward, the performance of both core segments (retail and solutions) is expected to gain strength. Ocado Zoom continues to be a promising proposition but is still in its early stages. We will tweak our estimates slightly but maintain the stock recommendation.

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  • 17 Jul 19
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Tesco

CMD crux: moving in the right direction

Tesco showcased some untapped money-making opportunities in the recently-concluded Capital Markets Day. The focus was on three pillars – Product, Channel and Customer. While some of these were not a surprise, the new opportunities were a welcome sign – boost its presence in Thailand through the convenience format, the concept of Tesco Finest (if implemented) and numerous cost savings steps. No change in the stock recommendation.

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  • 26 Jun 19
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Carrefour

Carrefour to sell Chinese unit, for good

Carrefour has announced it is to sell an 80% stake in its Chinese unit to Suning.com (a local retailer backed by Alibaba). We believe this is the right step by Alexandre Bompard. Moreover, we estimate this deal to have a positive impact on both earnings as well as the stock valuation. No change to the stock recommendation.

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  • 24 Jun 19
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Etablissementen Franz Colruyt

Decent closure to FY18/19; weaker outlook is not a surprise

Colruyt announced FY18/19 results in line with our estimates. The H2 performance was a bit softer as the company witnessed fluctuating promotional pressure in the retail market. We believe Colruyt will continue to make price and promotional investments to sustain the top-line momentum. The margins are likely to remain under pressure in FY19/20. We will trim our estimates but are likely to maintain the stock recommendation.

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  • 24 Jun 19
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