Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Profit upgrade from Coca Cola
There’s a profit upgrade out from Coca Cola HBC LON:CCH, with the note driven by a stronger than expected finish to the first half of the year. EBIT growth for FY23 is now expected to come in between 9-12% versus a previous forecasts of -3% to +3%. Mid term guidance remains unchanged and H1 results will be issued on 9th August.
- UK Stock Market News: Barclays, Unilever, Coca-Cola
- UK Stock Market News: Ocado, Smiths, JD Sports
- JD Sports shares: Is share price rally sustainable for sports retailer?
#2. Economic headwinds hit MJ Gleeson sales, shift buyer demographics
Low cost house builder MJ Gleeson LON:GLE has provided a trading update following its 30th June year end. The wider economic downturn is hitting completions, which are off by almost 15% YoY. Buyer demographics have changed markedly, with a contraction in first time buyers and popularity rising amongst the over 55’s, and the company sees its pricing strategy as being particularly compelling for those who may have previously bought a more expensive new build. This demand from value driven buyers is expected to be maintained in the medium term.
#3. JD Sports Iberian acquisition to complete
JD Sports LON:JD. has issued an update, confirming that it will proceed with the acquisition of Iberian Sports Retail Group. It is to buy the remaining 49.98% stake it doesn’t already own for a shade over EUR500m in cash. Last year the business posted pre-tax profits of EUR96.6m and has consolidated gross assets of EUR768m. Management believe that the combined entity can develop ISRG’s local brands whilst the unit can also play an important role in the further development of the JD fascia in Iberia and beyond. Antitrust filings – which have blighted a number of takeovers in the sector – are apparently not required.
