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What to expect from a selection of FTSE 100, FTSE 250 and selected other companies reporting next week:
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FTSE 100, FTSE 250 and selected other stocks scheduled to report next week:
*Events on which we will be updating investors.
Associated British Foods – Aarin Chiekrie, Equity Analyst
In a trading statement at the end of February, Associated British Foods announced it expects half-year sales to be more than 16% ahead of last year, ignoring exchange rate impacts. That’s thanks to consumer spending which has so far proved to be more resilient than initially forecast.
The food businesses, which encompass household brands like Kingsmill, Ryvita and Ovaltine, are expected to post sales and underlying profit figures well ahead of the same period last year – but at a lower margin. Inflated input costs have been running ahead of pricing and cost-saving activities, and we’re keen to see how much this has squeezed margins.
Next week’s results should also give us an updated look at ABF’s expectations for the second half. While inflation looks like it could be near its peak and some commodity costs have pulled back, there are still plenty of headwinds to battle. The cost-of-living crisis remains a dark cloud over consumers’ heads, and ABF has already said it’s cautious about potential effects on discretionary spending – which could have knock-on consequences to Primark’s fortunes.
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Unilever – Matt Britzman, Equity Analyst
Investors are awaiting Unilever’s upcoming trading statement detailing first-quarter sales performance, curious to see how the company’s strategy to protect its strong branded products amidst consecutive price hikes has played out.
While Unilever’s full-year results exceeded market expectations, the company has struggled to maintain volumes amidst price hikes and a cost-of-living crisis. We expect more rises over the first half as the group aims to grow underlying sales toward the top end of 3-5% over the year.
For now, at least, Unilever’s brand power has helped to offset some of the volume declines. That makes protecting the quality of their brands a top priority. To that end, brand and marketing spend is crucial, and we saw a €0.5bn increase in investment over the last year. It’s a non-negotiable expense for a brand machine like Unilever, and markets will be watching the volume picture closely.
We’ll also be on the lookout for any commentary on how the €600m cost-saving program is going. It’s expected to be weighted toward the second half, but early progress would be well received.
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Whitbread, Derren Nathan, Head of Equity Research
Whitbread carried strong momentum in its hotel business into the final furlong of the financial year. For the first five weeks of the quarter, UK accommodation sales were up 35% over the prior year and 36% ahead of pre-pandemic sales. Whitbread has been expecting pricing to remain strong. There are some signs that the market has remained resilient although there can be no guarantees. We’ll be looking to see if bookings remain strong into the current year. Food and beverage sales were also up in low double digits but not quite back at 2020 levels.
For the full year, consensus forecasts are expecting group revenue growth of about 50%, although this is flattered by Covid restrictions that were in force early in the comparative period. The forecasts also expect dividends for the full year to jump 66.3% to 57.7p, which if achieved implies a final pay out of 33.3p. This can’t be assured and the final dividend if any will depend on management’s confidence in the outlook.
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Unless otherwise stated estimates are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Past performance is not a guide to the future. Investments rise and fall in value so investors could make a loss.
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