MoPh Markets

ABF, Whitbread, Travis Perkins: Morning Roundup

European Indices opened lower on Tuesday as investors remain cautious ahead of the big tech firms earnings. The FTSE 100 is currently down 0.44%, whilst the FTSE 250 is down 0.30%.

As for UK stocks, ABF announced strong footfall across its businesses, Whitbread’s Premier Inn drove significant profit uplift, and Travis Perkins delivered a “resilient performance.”

Associated British Foods (ABF)

ABF reported its interim results, which saw strong footfall and better than expected margin at Primark. George Westorn, Chief Executive stated: “This period was marked by extreme and volatile inflation in all our businesses. We have taken considerable action to mitigate these costs through operational cost savings and, where appropriate, pricing.”

  • Group revenue grew 21% to £9.6bn, with food sales up 23% and Primark sales up 19%.
  • The group’s adjusted profit before tax came in at £667m, in line with the prior year period.
  • For the full year, ABF expect operating profit in its food business to be modestly ahead of last year, but remain cautious of resilient spending at Primark.

Whitbread

Whitbread announced its preliminary results for the 52 weeks to 2 March. The group’s Premier Inn business drove significant profit uplift versus FY22, as Dominic Paul stated, “these are a fantastic set of results.”

  • Statutory revenue came in at £2.6bn, up 54%.
  • Adjusted profit before tax was £413m, compared to a loss of £16m in FY22.
  • Current trading remains strong despite macroeconomic uncertainty as the board recommends an increased final dividend of £100m or 49.5p per share.

Travis Perkins

Travis Perkins delivered its first quarter trading update for the three months to 31 March. Nick ROberts, Chief Executive commented: “As we had anticipated, trading conditions were challenging in the first quarter but our diverse exposure across the construction sector has enabled us to deliver a resilient performance.”

  • Total sales fell by 2.8%, amid challenging market conditions.
  • Trading volumes fell 10.2%, driven by a 12.2% decline in Merchanting.
  • However, Travis Perkins stated Toolstation delivered a good performance, with total sales growth of 8.6%.

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