What to expect from a selection of FTSE 100, FTSE 250 and selected other companies reporting next week.
- Will faster profit growth still be in sight for Imperial Brands?
- Tesco will shed light on how customers are reacting to inflation
FTSE 100, FTSE 250 and selected other stocks scheduled to report next week:
| 10-April | |
|---|---|
| No FTSE 350 Reporters | |
| 11-April | |
|---|---|
| JTC | Full Year Results |
| 12-April | |
|---|---|
| No FTSE 350 Reporters | |
| 13-April | |
|---|---|
| discoverIE Group | Full Year Trading Statement |
| Imperial Brands* | Trading Statement |
| PZ Cussons | Q3 Trading Statement |
| Tesco* | Full Year Results |
| 14-April | |
|---|---|
| CMC Markets | Full Year Trading Statement |
| Hays | Q3 Trading Statement |
*Events on which we will be updating investors.
Imperial Brands – Derren Nathan, Head of Equity Research
Imperial Brands managed to eek out low single-digit sales growth and underlying operating profits last year despite a fairly hefty fall in tobacco volumes. It’s expecting profit growth to accelerate this year but for the first half to be flat. That’s due to increased investment in new products and the impact of Imperial’s exit from the Russian market. If next week’s half-year trading update comes up short, it will make those full-year targets more challenging.
We’ll be paying particular attention to the group’s ability to put through further price rises, with competitors reporting signs that smokers were abandoning their favourite brands for cheaper alternatives. We’ve already seen Imperial launch the second half of a £1bn share buyback programme this month. We hope this has been matched by continued strong cash generation.
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Tesco – Sophie Lund-Yates, Equity Analyst
Next week we’ll hear how the UK’s biggest retailer is getting on. Grocery inflation is well documented and is running at a huge 17.5%. That means customers are seriously feeling the pinch when it comes to their food shopping, and Tesco’s scale means it’s in the eye of that storm. Remaining competitive in this environment makes inflating margins difficult. Last we heard, Tesco expects to report underlying retail profit of £2.4 - £2.5bn for the full year, and we’ll find out if that’s been the case.
Another figure to watch out for is market share. As the market leader, the group has market share of over 27%, but because of tough conditions, supermarkets like Aldi are enticing new customers. We don’t expect the league tables to be upended. But it will be important to assess if Tesco’s share has been nibbled away at, which would suggest consumer pressure is higher than previously thought.
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