Among those currently scheduled to release results next week:
- Is the party over for Carnival?
- Will Next fall out of fashion with consumers?
- Can AG Barr keep a lid on inflated costs?
FTSE 100, FTSE 250 and selected other stocks scheduled to report next week:
| 27-Mar | |
|---|---|
| Carnival plc* | Q1 Results |
| 28-Mar | |
|---|---|
| AG Barr* | Full Year Results |
| Bellway | Half Year Results |
| John Wood Group | Full Year Results |
| Ocado* | Q1 Trading Statement |
| Petershill Partners | Q4 Results |
| Softcat | Half Year Results |
| Synthomer | Full Year Results |
| United Utilities* | Trading Statement |
| 29-Mar | |
|---|---|
| Next* | Full Year Results |
| 30-Mar | |
|---|---|
| BBGI Global Infrastructure Partnerships | Full Year Results |
| International Public Partnerships | Full Year Results |
| Moonpig Group | Trading Statement |
| Supermarket Income REIT | Half Year Results |
| 31-Mar | |
|---|---|
| Computacenter | Full Year Results |
| Vanquis | Full Year Results |
*Events on which we will be updating investors.
Carnival plc – Derren Nathan, Head of Equity Research
Earlier this month Carnival announced it had arranged a $2.1bn debt facility. But when it comes to the world’s largest cruise company’s debt pile, that is just the tip of the iceberg. We would like to see some evidence in next week’s Q1 update that the recent uptick in passengers is resulting in profitability and cash flows. And that’s not going to be plain sailing. Occupancy, although it’s been going in the right direction, has been below pre-pandemic levels. All the while, Carnival’s also been navigating the headwinds of higher advertising costs, fuel inflation and adverse currency movements.
The cost base and debt pile add extra pressure to sell more cruises. There are signs that demand is holding up well for now. Carnival recently disclosed that one part of its fleet, P&O cruises, has enjoyed a record performance in its peak booking period. We’ll be looking to see if the rest of Carnival’s brands are on the right tack. But with the cost-of-living crisis still biting hard, the pressure on discretionary spending continues to mount.
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Next – Aarin Chiekrie, Equity Analyst
Next’s last trading update gave the group plenty to cheer about. Sales over the Christmas period were better than expected. In the nine weeks to 30 December, full-price sales were up 4.8% on the prior year, with retail sales driving most of the uplift. This impressive festive trading led the group to upgrade its full-year profit guidance by 4.5%, now expected to come in at £860m when the group reports next week.
While these numbers are commendable, given the challenging environment for retailers, it’s important not to lose sight of the challenges ahead. To cope with rising costs, Next is raising prices. With the group set to pass on 6-8% cost inflation, we question whether consumers can stomach these hikes. If not, we could see sales drop. The group’s position as a middle-of-the-road retailer means its customers could slide down the value chain rather than fork over a little more.
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AG Barr – Aarin Chiekrie, Equity Analyst
Latest figures showed Barr’s revenues are expected to climb roughly 15% on a like-for-like basis, reaching around £315m for the year. The group’s hoping cost-cutting measures and price hikes can keep a lid on those inflated costs. This should help to deliver a solid profit performance next week, with many analysts forecasting a pre-tax profit of almost £43m.
Barr’s been pursuing non-organic growth opportunities as part of its growth strategy. These have been focused on the faster-growing areas of the industry, like oat milk producer MOMA, and more recently, the energy drink brand Boost. While these acquisitions should help growth in the long term, they’re likely to weigh on margins initially. And there are plenty of other headwinds to face, including revenues that come almost exclusively from the UK region. While revenues have been robust so far, this lack of diversification is a big risk. We’ll be looking closely for any early signs of weakening demand in the region.
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