Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Associated British Foods retail fares well in FY23, strong FY24 expected
Associated British Foods LON:ABF has published a pre-close trading statement for the full year to September 16th. Headline numbers are expected to be moderately higher than a year ago, with retail leading the charge. Sales for this division are set to be around 15% higher YoY as a result of new product lines and targeted price increases. Looking ahead, sugar is tipped to make strong gains in terms of profitability in the next financial year, whilst a weaker dollar, margin recovery and lower material costs should help retail in FY24.
- Companies Reporting: Dunelm, Fevertree, Trainline
- Companies Reporting: Lloyds Banking Group, Sainsbury, Associated British Foods
- Companies Reporting: Kingfisher, Ocado, Carnival, FeverTree
#2. Fevertree: strong sales growth but margins falling
Fevertree Drinks LON:FEVR published their interims to 30th June this morning. Revenue growth is 9% YoY but an eye catching 40% for the US market, which is now the company’s largest region. The highest ever market share was also achieved in the UK. Gross margins fell almost 7% as had been forecast, taking a significant toll on EPS. Shareholders are however set to benefit from a 2% increase in dividends.
#3. Itaconix gross profits rising, positive momentum in play
Itaconix LON:ITX has published half year results, showing a 32% uptick in comparative revenues and a 49% increase in gross profits. The company uses plant based polymers to decarbonise every day consumer products and the underlying momentum here is likely to be welcomed. Whilst an EBITDA loss was posted, cash burn over the last six months has been just over $1m and there’s close on $11m on hand.
