Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Volumes and revenues fizz at Coca-Cola HBC
Interim numbers are out from Coca-Cola HBC LON:CCH, noting organic volumes up by 3.6% with both the energy and coffee segments outperforming traditional drinks. Revenues were even better, adding 13.6%, whilst comparable gross margins are up by 100bps and management summarise it as having been a strong start to the year.
Whilst the macroeconomic and geopolitical backdrops are expected to remain challenging in the second half, guidance for the full year is being increased with organic revenue growth now set to land between 8% and 12%, up from 6-7%.
#2. Housebuilding slowdown hampers growth at Ibstock
The building products maker Ibstock LON:IBST perhaps best known for its house bricks has interims out today with revenues down 20% and pre-tax profits off by 60%. The interim dividend has been cut but this all reflects the ongoing slowdown seen in the building market as confidence is hit by high interest rates. Adjusted EBITDA was in line with expectations and the company is optimistic that government housebuilding plans will yield results in the medium term – but will this be sufficient to placate investors?
#3. Jump in WPP operating profits as revenues remain broadly flat
Interims from the advertising giant WPP LON:WPP are also out today noting revenues as being broadly unchanged from a year ago, but operating profits have jumped by almost 40%. The interim dividend is being maintained at 15p. One point worthy of note is that performance in US markets had an outsized impact on profits, so any abrupt slowdown here could be cause for concern.
