Company Diary: Imperial Brands, CVS

Our regular look at the FTSE 350 and other companies reporting from 06 – 10 October.

• Imperial Brands’ profitability in focus as new CEO takes over
• CVS expects margin expansion; competition enquiry delayed again

Imperial Brands, Full Year Trading Statement, Tuesday 7 October

Derren Nathan, head of equity analysis, Hargreaves Lansdown: Next week’s trading update will reveal whether the tobacco giant Imperial Brands LON:IMB has done enough to meet its full-year guidance. Strong pricing in the first half more than offset the decline in tobacco volumes, allowing underlying revenue to grow 3.2%, to £3.7 billion. And despite charging smokers more to satisfy their cravings, the group’s been making solid market share gains. How long that continues remains to be seen, but analysts think there’s a strong foundation for achieving full-year growth in the low single-digit range.

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However, underlying operating profit growth expectations in the mid-single digits are more demanding. First half growth of just 1.8% means there’s some heavy lifting to be done in the period about to end, and investors are keen to hear that Imperial is still on track as Chief Financial Officer, Lukas Paravicini, steps up to take the CEO seat.

CVS, Full Year Results, Tuesday 7 October

Derren Nathan: CVS Group’s LON:CVSG last trading update pointed to full-year revenue of £673 million to be reported in next week’s results. That reflects like-for-like growth of 0.2%, held back by softer market conditions in the UK. The mid-point of analyst forecasts implies underlying cash profit (EBITDA) growth of 4.8% to £133.4 million. It looks like the final outcome won’t stray far from this.

• UK Stock Market News: CVS, NatWest, Energean

Net debt is expected to have fallen by more than £50 million over the second half, to £131.4 million. Investors will be watching to see if that’s prompted an acceleration in the group’s expansion in Australia.

The results are coming out a bit later than last year. That’s in the hope there will be more clarity around the delayed decision by the UK Competition and Markets’ enquiry into the veterinary industry, but a further postponement by the regulator means investors aren’t expecting much news on that front.

For the current week’s reporting diary see our Company Diary page here.

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