Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Mitchells & Butler market outperformance noted
There’s a Q4 and full year trading update from Mitchells & Butler LON:MAB. Revenues advanced by 9.7% over the last 13 weeks, slightly ahead of the full year average. The company notes sustained growth in both food and drink, along with market outperformance. Cost headwinds are abating, although one interesting overall barometer is that sales are only 10.5% ahead of pre-pandemic levels, which given inflationary pressures could be seen as telling. To put that info context, the average price of a pint is up almost 25% over the last four years.
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#2. 888’s customer friendly results see margin forecasts trimmed
888 Holdings LON:888 has published an update on current trading and full year guidance. Performance across the group is reported as being mixed with Q3 revenues set to be around 10% lower YoY. Compliance changes in the online market have taken a toll, along with a number of “customer friendly” sports results being seen.
The Group now expects revenues in Q4 ‘23 to be sequentially higher than Q3, but lower year on year by a mid-single digit, before returning to growth in FY24. Adjusted EBITDA margin is now expected to be approximately 18-19%. Critically, that’s down on the 20% forecast which was offered just six weeks ago.
#3. Diageo pre-AGM statement gives nothing away
There’s a brief pre-AGM trading statement out from Diageo LON:DGE this morning. This notes that guidance for FY24 remains unchanged despite ongoing challenges with regard to ongoing cost pressures plus geopolitical and macroeconomic uncertainties. Mid term sales growth is 5%-7% and organic operating profits are expected to rise by 6%-9%.
