Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Persimmon: macroeconomic headwinds dampen first time buyer demand
There’s a Q1 trading statement from Persimmon LON:PSN today, noting a dramatic slowdown for the housebuilder. Compared with a year ago, completions fell 42% and current private forward sales dropped by 47% although management note that this was in line with expectations. Since the start of the new financial year four weeks ago, sales rates have been improving and this is seen as reflective of improving consumer confidence, although the note adds that attracting first time buyers remains challenging.
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#2. GSK’s COVID hangover drags on sales growth
First quarter numbers for GSK LON:GSK reflect falling sales YoY, although stripping out revenues generated from COVID solutions and the picture is somewhat more upbeat. Operating margins have improved and the company has confirmed that its full year guidance with a 10-12% increase in operating profits remains unchanged.
#3. Reckitt Benckiser: strong start to year but momentum set to slow
Reckitt Benckiser LON:RKT also has Q1 numbers out today showing a strong start to the year with net revenues up by 7.9%. Momentum here is unlikely to be sustained but full year expectations are now for sales growth of 3-5%, underpinned by product innovation and a resilient supply chain although dampened by the prospect of more challenging competitive dynamics in the US nutrition business.
