Companies Reporting: Greggs, Reckitt, Entain, ITV, Vistry

Our regular look at the FTSE 350 and other companies reporting from 03 – 07 March.

• Greggs battles with a tougher market
• Reckitt navigates streamlining efforts
• Entain faces legal and leadership challenges
• ITV focuses on growing digital advertising through ITVX
• Vistry hoping to rebuild investors’ confidence

Greggs, Full Year Results, Tuesday 4 March

Matt Britzman, senior equity analyst, Hargreaves Lansdown: Greggs LON:GRG is navigating a challenging period as it approaches its full-year 2024 results next week, with pre-tax profit expected to grow just shy of 12%.That’s a solid result, though it is a slowdown compared to the stronger performance earlier in 2024. High street footfall weakened in the third quarter, with management noting a drop in consumer confidence as the key behind a deceleration in sales growth. Heading into the results, sentiment feels mixed, balancing operational resilience against a tougher economic backdrop.

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Investors will have a few key priorities in focus. First, the 2025 cost outlook looms large, particularly how tax changes off the back of Rachel Reeve’s Budget will affect margins. Next, consumer spending in the fourth quarter will be critical – especially with consumer goods firms already warning of a soft start to 2025, a trend Greggs will likely echo. Finally, the company’s growth engines – store expansion, evening trade, and digital channels – need to show sustained progress to reassure markets that Greggs can keep pushing forward despite the sector headwinds.

Reckitt Benckiser, Full Year Results, Thursday 6 March

Matt Britzman: Reckitt LON:RKT is all set to release its full-year and fourth quarter results next week, with expectations of like-for-like (LFL) net revenue growth of 1-3%.There’s expected to be a high single-digit drop in its nutrition segment due to ongoing challenges from the Mount Vernon tornado, so investors will be keen to see if this can be offset by growth in the Health and Hygiene segments.

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Further clarity on portfolio optimisation is also expected, including the exit from Essential Home and updates on the strategic review of its US business, Mead Johnson. Another key area of interest will be whether the company can improve its volume growth this quarter, setting the stage for more balanced price and volume performance in 2025.

Entain, Full Year Results, Thursday 6 March

Susannah Streeter, head of money and markets, Hargreaves Lansdown: Entain LON:ENT has been buffeted by numerous headwinds, not least the ongoing lawsuits concerning bribery investigations and the departure of the CEO after just six months in the job. Investors will want more clarity about how the company is meeting these challenges and, in particular, how this chief executive job search is progressing.

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Legal and leadership issues have overshadowed the break of better news operationally at the start of the year when the company released an update indicating that annual profits would come in at the top end of guidance. While this was welcomed by shareholders, Entain is still struggling to regain its form in terms of its valuation. Entain’s hopes of rewards flowing from the US market haven’t yet come to fruition as it spends big to gain market share. But its online gambling tie up with MGM Resorts is expected to turn profitable this year.

Tighter regulation has also been weighing on the UK and Ireland market, which has been its biggest contributor to profits in the core business. Investors will want to see further signs that marketing efforts are bearing fruit in increasing traffic to betting and gaming websites.

ITV, Full Year Results, Thursday 6 March

Susannah Streeter: ITV LON:ITV shares have been recovering but still reflect the structural decline of broadcast advertising which is weighing on the company. However, the bright spot is digital advertising with ITVX, the streaming platform, and investors will want to see evidence that its strong run of growth is continuing. ITVX’s ability to attract and retain subscribers is crucial. Given that if there are more eyes on screen, it will make marketeers more inclined to splash the cash. The group has shown prowess in its ability to produce a slate of homegrown favourites, like Love Island, but it has to keep churning out the hits to keep up the subscriber base. At the moment, ITV will have to play the long game until digital offerings have the scale to offset the weight of weakness in the free-to-air side of the business, but any spurt of progress here will help reassure investors.

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Vistry, Full Year Results, Thursday 6 March

Aarin Chiekrie, equity analyst, Hargreaves Lansdown: Vistry’s LON:VTY in a tough spot after issuing three profit warnings in the final quarter of 2024. Markets will be watching next week’s announcement like hawks, keen to get an insight into the group’s outlook for 2025.

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A lot of the recent issues have stemmed from spreading itself thin and chasing higher volumes too quickly. Investors would like to see a reset in management’s focus, towards improving profitability and cash generation, even if it means leaving opportunities on the table if a big enough margin of safety can’t be built into contracts.

Despite the major drop in valuation off the back of recent slip-ups, further disappointments can’t be ruled out. Management has a tough job on its hands to rebuild investors’ confidence, and investors would like to see a candid assessment of both the opportunities and challenges that lie ahead in next week’s full-year results.

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