Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Unilever
There’s no shortage of heavyweight companies reporting today although from what’s been seen so far, it all looks rather mundane. A Q1 update from Unilever LON:ULVR has shown underlying sales growth for the period up by 5.7% although strong currency headwinds have taken the edge off this. There’s confidence that sales growth can continue to be seen through the year that lies ahead and the food & beverage performance is worth a mention, with strong growth being seen here despite some tough comparatives, especially for March 2020 when the closure of dining venues led to a spike in sales.
Smith & Nephew
Smith & Nephew [LON:SN] also had a Q1 trading update out this morning, which as had been expected shows an improvement as many parts of the world look beyond COVID. The company had been something of an outlier in the medical industry as its products typically relate to elective surgeries rather than critical care. As hospitals now attempt to catch up with a backlog of procedures such as hip replacements, the company has reinstated guidance for the full year and expects to see revenues grow 10%-13% with a trading profit margin of 18%-19%.
NatWest Group
NatWest Group LON:NWG reports Q1 numbers today as well, with the bank posting profits for the quarter of £946m, which is close on double analyst expectations. Some £72m has been trimmed in terms of cost savings but perhaps most critically, bad loan provisions made in the wake of COVID have been scaled back and that has been sufficient to deliver a return on tangible equity of 7.9%, up from -1.4% in the previous quarter and 3.6% in Q1 ’20.
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