3i's Strong 3Q NAV Dims Drop in Other -2-

1043 GMT - Fevertree Drinks' FY 2023 guidance is very disappointing given the group's previous comments on profitability improvement amid reversing freight costs and U.S. supply ramp-up, RBC Capital Markets analysts Emma Letheren and James Edwardes Jones say in a note. The mixer-maker's guidance for Ebitda at the mid-point of the GBP36 million-GBP42 million range, compared with market consensus of GBP47 million, implies further deterioration in its margins, they say. With no improvements expected for FY 2023 margins, Fevertree's profitability trajectory is concerning, they add. "We've been nervous about the discretionary nature of its products and pricing power in the current macroeconomic environment and this print has cemented those concerns," the analysts highlight. ([e-mail])

Diageo 1H Looks Disappointing as US Sales Fall Short of Hopes

1036 GMT - Diageo shares are among the biggest FTSE 100 fallers, down 7% after the Johnnie Walker whisky and Smirnoff vodka maker reported a first-half sales slowdown and said it expected trading conditions to stay tough. While sales and earnings topped expectations, driven by stronger trading in Europe, Latin America and Asia, North American trading was soft and the outlook was cautious, Citigroup says. North America organic sales rose 3%, compared to market forecasts of 6.7%, while a 2% increase in U.S. spirit organic sales was particularly low and well below recent market expectations of about 10%, Citi says. "Diageo's 1H 2023 result is disappointing and we expect the stock to trade lower today," Citi analysts say in a note. ([e-mail])

Wizz Air's Lacking Pricing Upgrade Likely to Be Taken Negatively

1024 GMT - Wizz Air's reported 3Q net income of EUR33.5 million was above expectations of a EUR112 million net loss, with the beat mainly driven by foreign-exchange gains of EUR224 million, Citi analyst Sathish B. Sivakumar says in a note. The company saw unit pricing in the period up around 4% from December 2019 compared with consensus of around 6% but unit cost excluding fuel rose around 11%, with consensus of around 7%, Sivakumar says. The airline has reiterated the mid-to-high single-digit percentage increase in pricing in 2H of 2023 versus 2H of 2020, he says. "Overall, we see the lack of upgrade in pricing likely to be taken negatively," Sivakumar says. Shares are down 6.8% at 2,806 pence. ([e-mail])

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(END) Dow Jones Newswires

01-26-23 0622ET