AB Foods' Margin Outlook Seen Driving Downgrade to Consensus

0755 GMT - Associated British Foods' results for 1H of fiscal 2022 were stronger than expected, but the group will likely have a downgrade to consensus over a worsening outlook, RBC Capital Markets says in a research note. The margin outlook for the British conglomerate's food business and for Primark is softer than expected, RBC says. The company's grocery and ingredients margins are likely to be pressured by higher input costs from energy, logistics and commodities, RBC says, adding that Primark's margins are expected to be hit by currency and other inflation pressures. "As such, we see some small downside risk to consensus earnings forecasts for fiscal 2022/2023." Shares fall 2.5% to 1,589.00 pence. (sabela.ojea@wsj.com; @sabelaojeaguix) 


 
Companies News:

HSBC's Quarterly Profit Drops 28%

HSBC Holdings PLC said its profit for the first quarter fell 28% year-over-year, as it made provisions for souring loans in Russia and China, but the banking giant said rising global interest rates would help it hit longer-term targets.

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National Express Says 1Q Revenue Back at 2019 Level

National Express Group PLC said Tuesday that revenue in the first quarter bounced back to 2019's level and that revenue in March was ahead of March 2019.

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Taylor Wimpey Says Early 2022 in Line with Views; Sales Have Slipped

Taylor Wimpey PLC said Tuesday that its sales rate has slipped in 2022 to date though its order book rose, and that it is performing in line with its expectations thanks to a healthy U.K. housing market.

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Elementis 1Q Revenue Rose; Initiates Strategic Review of Chromium Business

Elementis PLC said Tuesday that first-quarter revenue rose, driven by pricing actions, new business wins and continued demand recovery in personal care, and that it has initiated a strategic review of its chromium business.

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Loungers FY 2022 Revenue Reaches Record Level After Post-Christmas Recovery

Loungers PLC said Tuesday that revenue for fiscal 2022 reached a record level after a post-Christmas recovery from the Omicron variant of Covid-19 and that it expects profitability to be slightly ahead of market expectations.

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Jupiter Fund Management's 1Q Assets Under Management Fell on Negative Market Returns

Jupiter Fund Management PLC said Tuesday that assets under management fell in the first quarter of 2022 when compared with the last quarter of 2021 as a result of negative market returns and net outflows.

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Schroders To Convert Non-Voting Shares Into Ordinary Shares

Schroders PLC said on Tuesday that it is proposing an enfranchisement of its non-voting ordinary shares, converting them into ordinary shares with the same existing rights.

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SigmaRoc 1Q Revenue Rose; Confident on 2022 Prospects Despite Russia's War

SigmaRoc PLC said Tuesday that revenue in the first quarter rose, and that the board remained confident about the company's prospects in 2022 despite the potential effects stemming from Russia's war in Ukraine.

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Franchise Brands Sees 1Q Sales, Earnings Growth

Franchise Brands PLC said Tuesday that it has seen continued strong sales momentum and earnings growth in the first quarter of the year, and that the integration of its recent Filta Group Holdings PLC acquisition is proceeding well.

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IWG 1Q Revenue Rose on Pandemic Recovery

IWG PLC said Tuesday that first-quarter total group revenue rose 18% on a constant-currency basis as strong momentum persisted, though it is experiencing higher inflationary cost pressures.

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AB Foods 1H Profit Soared; Primark to Raise Prices to Tackle Inflation Effects

Associated British Foods PLC reported Tuesday a significant rise in adjusted operating profit for the first half of fiscal 2022, ahead of prepandemic levels as expected, and said that Primark will raise prices to tackle the effects of inflation.

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Trakm8 Holdings FY 2022 Revenue Increased on Fleet Strength, Adjusted Pretax Profit Seen In Line

Trakm8 Holdings PLC said Tuesday that revenue for fiscal 2022 rose after a strong performance from its fleet segment, and that it expects adjusted pretax profit to be in line with guidance.

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Warpaint London 1Q Sales Rose 60%; Swung to 2021 Pretax Profit

Warpaint London PLC said Tuesday that group sales in the first quarter of 2022 were around 60% ahead of the year-prior period, and that it swung to a 2021 pretax profit as revenue rose.

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Egdon Resources Sees Wressle-1 Oil Project Exceeding Expectations

Egdon Resources PLC said Tuesday that its Wressle-1 onshore oil project in England has exceeded preproduction expectations, achieving instantaneous flow rates of more than 1,000 barrels of oil a day. 


 
Market Talk:

HSBC Holdings' Lower CET 1 Ratio to Drag Share Price

0815 GMT - HSBC Holdings' earnings for the first quarter beat expectations for the period, but its lower common equity Tier 1 ratio will likely drive downgrades to consensus and hit its share price, Shore Capital analyst Gary Greenwood says in a research note. The U.K. investment group expects full-year CET 1 ratio forecasts on the U.K. lender to reduce. Shore downgraded its recommendation on the stock to hold last week and reiterates its neutral stance now, noting that it prefers a combination of Barclays, Lloyds and Standard Chartered as a better-value alternative. Shares in London are down 1.3% at 494.55 pence. (sabela.ojea@wsj.com; @sabelaojeaguix)


Contact: London NewsPlus; Dow Jones Newswires; paul.larkins@wsj.com

(END) Dow Jones Newswires

04-26-22 0436ET