Among those currently scheduled to release results next week:
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02-Jun | |
|---|---|
Sirius Real Estate | Full Year Results |
03-Jun | |
|---|---|
British American Tobacco* | Trading Statement |
Chemring Group | Half Year Results |
Pennon* | Full Year Results |
04-Jun | |
|---|---|
B&M European Value Retail | Full Year Results |
discoverIE Group | Full Year Results |
Ninety One | Full Year Results |
Paragon Banking Group | Half Year Results |
WH Smith | Q3 Trading Statement |
05-Jun | |
|---|---|
CMC Markets | Full Year Results |
Dr Martens | Full Year Results |
Fevertree* | AGM Trading Statement |
Mitie Group | Full Year Results |
Wizz Air | Full Year Results |
Workspace Group | Full Year Results |
06-Jun |
|---|
No FTSE 350 Reporters |
Will British American Tobacco’s bets on new categories deliver?
British American Tobacco heads into its upcoming trading update with investor attention firmly on its ability to navigate persistent industry headwinds. The group delivered a modest 1.3% organic revenue growth in 2024. Regulatory pressures and rising tobacco taxes continue to weigh on the outlook.
As such, this year’s guidance for around 1% sales growth and 1.5–2.5% profit growth currently stands below the group’s medium-term targets. The upcoming update will be closely watched for signs that New Categories can deliver more meaningful growth and help offset the structural decline in traditional tobacco.
As global cigarette volumes decline, BATS is leaning more heavily on its ‘New Categories’, including vapes and heated tobacco, which grew 8.9% last year. We’ll be watching closely to see if US action to crackdown on illegal competition has had any impact and whether the lifting of a proposed ban on menthol cigarettes has helped the outlook.
Fevertree’s international expansion in focus
Fevertree is gearing up to release a trading statement next week, so we’re eager to get some updates on its international expansion. The recent strategic partnership with Molson Coors is expected to help drive the next leg of growth in North America.
Attention will also turn to performance across other key regions. In the UK, sales have been on a downward trend for a while, and we’re not expecting much change on this front. We’re slightly more optimistic on progress in Europe and the rest of the world, which are seen as higher-growth markets given their size.
It’s set to take a bit of time for the new Coors partnership to get up and running, so we expect Fevertree to reiterate its guidance for low single-digit revenue growth for the full year. In the meantime, increased marketing spending in the US to help stimulate demand could weigh on profits.
Pennon eyes growth amid tariff boosts
Pennon Group is set to report full-year results next week, with consensus forecasts pointing toward revenue growth of 14% to £1.0bn. After Pennon accepted the regulator’s price review, customers’ bills will rise by a total of 23% in the five years to March 2030, so revenue growth looks set to continue powering ahead.
The top line growth should help fund its mammoth investment plans, with Pennon required to spend £3.2bn upgrading and fixing its water networks over the same five-year period. This comes as pressure on the sector has been mounting due to pollution of rivers and lakes in recent times, so we’re eager to see how much early progress has been made. Until Pennon proves that it’s cleaning up its act, investor sentiment around the company is likely to remain muted.
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