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Companies Reporting: Ocado, Haleon, Taylor Wimpey

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Our regular look at the FTSE 350 and a selection of other companies reporting from 26 February – 1 March

  • Volumes in focus for Reckitt
  • Taylor Wimpey set to give a glimpse into the health of the UK housing market
  • Will Haleon catch a cold?
  • Hammerson displays signs that it’s moving in the right direction
  • Focus will be on Ocado’s Solutions business

Reckitt, Full Year Results, Wednesday 28 February

Matt Britzman, equity analyst, Hargreaves Lansdown “Reckitt reports full-year results next week and if there’s one thing it needs to deliver, it’s improving volumes. Third-quarter results disappointed and the concern remains that consumers have yet to fully digest higher prices. Management was quick to give positive commentary on volumes, which are expected to improve over the fourth quarter. But there was no specific guidance given on when their growth might turn positive again.

There’s scope for margin expansion if volumes can start to move in the right direction over 2024, so guidance and commentary here will be watched closely. Given the valuation drop over the past couple of years, it won’t take much to give sentiment a boost. Of course, there are no guarantees.”

Taylor Wimpey, Full Year Results, Wednesday 28 February

Aarin Chiekrie, equity analyst, Hargreaves Lansdown “Next week investors will get a glimpse into the health of the UK housing market, with Taylor Wimpey reporting full-year results. Last markets heard, the order book had slipped 8.7% lower to £1.8bn. And despite 2023’s operating profit expected to come in at the top end of the group’s £440-470mn guidance, it still marks a rough halving from the prior year. But a robust landbank and a healthy net cash position of £678mn at year-end should help provide a cushion to any potential bumps in the road.

Looking to 2024, investors are keen to hear where Taylor Wimpey casts its official guidance, with markets currently forecasting revenue and profits to fall at low single-digit rates. Against an improving backdrop of falling mortgage rates and lower build-cost inflation, which should improve affordability for buyers, there could be room for a few positive surprises in next week’s update.”

Haleon, Full Year Results, Thursday 29 February

Derren Nathan, head of equity research, Hargreaves Lansdown “After two guidance upgrades in 2023, Haleon’s full-year results are expected to show organic revenue growth of between 7-8% with faster growth of 9-11% for underlying operating profit. 2023 saw high levels of cold and flu which will have directly boosted sales of products such as Theraflu and Otrivin, and will have done no harm to the Group’s vitamin supplements and painkillers. Investors will be looking to see if this has persisted into 2024, as all eyes turn to the outlook for this period and beyond.

Based on forward earnings, the shares trade in line with the peer group, but they offer a lower yield. Given the relatively high debt levels, the gap is unlikely to close any time soon. With this in mind, there’s certainly some pressure to deliver an acceleration in growth.  Despite Haleon’s impressive portfolio of brands, this may still be challenging in the current economic environment.”

Hammerson, Full Year Results, Thursday 29 February

Susannah Streeter, head of money and markets, Hargreaves Lansdown “Hammerson has been going through a painful transition as it has continued to recover from being sideswiped by the pandemic. The journey has been made harder by cost-of-living headwinds which rattled investor confidence in the shopping centre owner, given concerns about how business would be affected at key sites like Brent Cross. However, it’s been narrowing annual losses and has been undertaking a disposal of underperforming parts of its portfolio, and the signs are that it’s moving in the right direction with leasing momentum improving over the first 6 months of 2023.

There were also indications of a strong pipeline for the second half of the year as well, so investors will want to see evidence of that in full-year numbers. Hammerson has also been hit by wider concerns about the real estate sector given the ramping up in interest rates. With cuts eyed on the horizon, relief of pressure on businesses and consumers is in sight, but it still won’t be plain sailing for the retail sector in the immediate future and so guidance will be closely watched.”

Ocado, Full Year Results, Thursday 29 February

Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown “Ocado retail had a record Christmas, but revenue growth is expected to be held back by lower average selling prices this year. Overall, Ocado expects revenue growth to be in the mid to high single digits for this part of the business. It will be important to monitor how consumer behaviour holds up for the group – its higher price point makes it more exposed in the ongoing supermarket price wars.

The market will be more interested in the group’s Solutions business though. New deals being struck for Ocado to supply its high-tech end-to-end grocery picking platform is where future growth lies, and there haven’t been too many chains signing on the dotted line. A slightly clearer economic landscape could see corporate wallets opening back up, but investors are very much in wait-and-see mode.”

This article has been brought to you in association with Hargreaves Lansdown. All opinions expressed in this article are from the analysts and do not necessarily represent the opinions of The Armchair Trader.

FTSE 100, FTSE 250 and selected other companies scheduled to report

26-Feb
Bunzl Full Year Results
27-Feb
Abrdn Full Year Results
Croda International Full Year Results
Smith & Nephew Full Year Results
Unite Group Full Year Results
28-Feb
Aston Martin Lagonda Full Year Results
Bluefield Solar Income Fund Half Year Results
Derwent London Full Year Results
Primary Health Properties Full Year Results
Reckitt Full Year Results
Renewables Infrastructure Group Full Year Results
RHI Magnesita NV Full Year Results
St James’s Place Full Year Results
Taylor Wimpey Full Year Results
29-Feb
Anheuser-Busch Inbev Full Year Results
CVS Group Half Year Results
Drax Group Full Year Results
Haleon Full Year Results
Hammerson Full Year Results
Howden Joinery Full Year Results
Hunting Full Year Results
International Consolidated Airlines Group Full Year Results
London Stock Exchange Group Full Year Results
Man Group Full Year Results
Mobico Full Year Results
Ocado Full Year Results
PPHE Hotel Group Full Year Results
Schroders Full Year Results
Serco Group Full Year Results
Shaftesbury Capital Full Year Results
Spectris Full Year Results
Spire Healthcare Full Year Results
Vesuvius Full Year Results
Weir Group Full Year Results
1-Mar
IMI Full Year Results
Pearson Full Year Results
Rightmove Full Year Results
Tritax Big Box Reit Full Year Results

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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