Rolls-Royce, Sainsbury’s, BT Group: Morning Roundup

It is a busy day of trading updates and third-quarter earnings releases on Thursday, while we also have the BoE interest rate decision to come later. Here’s some of the biggest news so far: 

Rolls-Royce (RR.)

  • Rolls-Royce released a trading update stating its recovery continued with record order intake in Power Systems and large engine flying hours at 65% of 2019 levels in the four months to the end of October.
  • The company said the recent volatility in FX and exchange rates has not had a material impact on our underlying cash flows or FY22 Group guidance, which is unchanged.
  • Rolls-Royce said its more agile operations and sustainably lower cost base position it well for the uncertain pace of the recovery from the pandemic and market volatility, while it has also repaid £2bn of debt taken on during the pandemic.

Sainsbury’s (SBRY)

  • Sainsbury’s posted interim results for the 28 weeks that ended September 17.
  • The company’s H1 underlying profit before tax of £340 million was down 8% YoY, while statutory profit before tax of £376 million represented a 29% decline.
  • The fall in profits came despite a rise in sales, which rose 4.4%.
  • Sainsbury’s said trading momentum has remained strong in the first few weeks of H2, and it continues to expect underlying profit before tax in FY22/23 to be between £630 million and £690 million and to generate retail free cash flow of at least £500 million.

BT Group (BT.A)

  • BT Group revealed in its H1 update that pre-tax profit was down 18% to £831 million due to increased depreciation from network build and higher specific costs offsetting adjusted EBITDA growth.
  • The company raised its cost-saving target from £2.5bn to £3.0bn by the end of FY25 due to inflation.
  • Revenue was £10.37 billion, up 1% due to growth in Consumer and Openreach.
  • The company confirmed a 2.31p dividend.

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