Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
1. Shipping woes apply brakes at soft drinks maker Fever-Tree
Fever-Tree Drinks (LON:FEVR) have published a trading update ahead of their AGM today. Whilst the news paints an upbeat picture of current performance, with trading evidently being in line with the targets set out in March, the company acknowledges that it is already facing challenges shipping product to the US, although attempts to offset this by increasing production state-side are being made. The elephant in the room however is the series of red flags we’re seeing over consumer behaviour, especially in the US, as the cost of living bites.
2. easyJet: Leisure and domestic traffic set to exceed pre-pandemic levels
Half year numbers from easyJet (LON:EZJ) are out today, noting that whilst the headline loss exceeds £500m, there has been some heavy route optimisation and changes to ancillary product offerings in a bid to right the ship. Seats on offer for leisure and domestic markets in the second half will exceed pre-COVID levels although the company acknowledges that higher fuel costs compounded by a strong US Dollar will also serve to reign in performance. Guidance for the year ahead is however being limited by the level of short term uncertainty in play.
3. Solid results from energy distributor National Grid
National Grid (LON:NG.) has posted full year results today, with profits up 11% to £4 billion. Shareholders are being rewarded with a 3.7% increase in dividends and notes that it is on track to deliver £400m of cost savings by the end of the 2023/24 financial year. The outlook for the medium term remains unchanged, with a target of driving annual EPS growth by 5-7%, although following some tough comparatives, earnings growth in the short term is expected to be broadly flat.
