9m FY21 figures were obviously down vs. FY20 (strong negative comps), but they were still remarkable compared with FY19. We expected very complicated management of inflation for the group, but we see a rather good surprise on that side. On the other hand, we should be more cautious about 2022, when the current hedging will roll off.
Companies: Ebro Foods (EBRO:BME)Ebro Foods SA (EBRO:MCE)
Unsurprisingly, we see a decrease in the results compared to 2020, but still good progress compared to 2019, which confirms the good trajectory of the group.
With no surprise, Q1 FY21 top and bottom lines declined due to tough comps. The momentum remains, however, strong looking at CAGR 21/19, but input cost inflation is now the main threat looking forward.
Unsurprising very strong FY20 results (but still even more than our expectations). We believe Ebro is at a turning point and we continue to be positive on the stock.
Although the figures showed greater volatility, the rise in demand triggered by the COVID-19 pandemic continues to dominate Ebro’s results. Deleveraging is well on track.
Companies: Ebro Foods SA
After a strong set of FY19 figures, Ebro’s Q1 benefited from COVID-19 due to increasing rice and pasta consumption. Q2 should be even better, while we expect a gradual return to normal starting in Q3. EBITDA is affected by raw material prices increase, but the group is confident that the FY20 bottom line should be better yoy.
A strong set of FY19 figures, especially thanks to strong comparables. We note that organic investments had begun to bear fruit, although the company doesn’t expect to see the relevant impacts until 2021. In the mean time, it is actually debt that is going up.
The group reported a strong set of Q3 FY19 results, beating analysts’ expectations on the bottom line. Ebro’s investments finally pushed up growth… as well as the group’s debt.
FY18 Key Financials :
Group sales grew by 5.6% to €2,464m (on organic basis: +2%)
EBITDA fell by 13.4% to €311m, with currency having a negative impact of €4.4m
EBITDA margin declined by 2.6 pp to 11.7%. In Q4: 14% EBITDA margin
Net profit fell by 36% to €142m, while the FY17 net profit was positively driven by the tax-related measures approved in the USA, France and Italy (one-off extraordinary income of €56.5m). Excluding this external effect, net profit fell by 14%
FY18 Net debt/EBITDA
Q3 update: Sales are up 11%, however, the EBITDA margin contracted by 340bp due to the Rice business which was impacted by higher raw material prices (mainly in North America) as well as a weaker Pasta performance and higher logistics costs in the US.
By division, Rice recorded +16% in sales and a 516bp EBITDA margin contraction to 9.2%. Pasta recorded +7% in sales and a 316bp EBITDA margin contraction to 9.8% (in Europe, Pasta consumption was negatively impacted by the hot weather, the group e
H1 update: revenue grew by 2.3% (+5.5% in Q2), whereas EBITDA contracted by 16.6%. The EBITDA margin stood at 11.2%.
By division, the Rice business’s sales were up +2.6% in Q2, whereas the EBITDA margin contracted vs. Q1 to 12%.
In Pasta, sales were up +8% in Q2 (partially helped by easier comps) while the EBITDA margin stood at 11.1% (vs. 11.8% in Q1).
Net profit for the period is down 17.1%.
Q1 update: net sales grew +1.3% (+3% excluding FX), whereas the EBITDA margin contracted 220bp to 12.6%.
By division, Rice recorded +1.9% growth in net sales and a 450bp EBITDA margin contraction to 13% (Q4: 14.1%) due to the substantial increase in cost of raw materials (c.+22% inflation) as well as increased logistic costs and a shortage of plant workers in the US (high demand for electricians following the hurricanes). Pasta recorded -3.6% in sales with a 20bp contraction in the EBITDA margi
FY update: sales are up 1.9% (Q4: 5.8%) with the EBITDA margin up by 30bp to 14.3% (in line with 9M).
By division, Rice recorded +4.8% in sales with the EBITDA margin at 15.3% (stable yoy). Pasta recorded -1.4% in sales and a 70bp progression in the EBITDA margin to 13.4%. Garofalo continues to register double-digit growth.
Net profit is up 30% due to US tax regime benefits (c. €50.6m gain). The new tax reform will benefit the company through a reduction in outgoing tax payments of around $15
Q3 update: sales are down 3.5% and the EBITDA margin contracted by 60bp on the back of the Rice business which was impacted by higher raw material prices and hurricanes in the US.
By division, Rice recorded -5.6% in sales and an 80bp EBITDA margin contraction. Pasta recorded -2.1% in sales and a -30bp in EBITDA margin.
After 9M, the group’s sales are up 0.6%, whereas the EBITA margin is 14.3%.
For the FY, the group expects a turnover of €2.51bn (slightly lower than our forecast of €2.53bn), a
H1 update: revenue grew by 2.6% (+4.3% in Q2) whereas EBITDA progressed by 10.5%. The EBITDA margin was up 100bp yoy to 14.5%.
By division, the Rice business sales were up +7.6% in Q2, whereas the EBITDA margin contracted vs. Q1 to 15.3% but was up 10bp on yoy basis.
In Pasta, sales were down 4% in Q2 (impacted by the heat wave in France and stronger competition in freash ready-to-serve food) while the EBITDA margin improved to 13.3% (vs. 12% in Q1) on the back of new launches in North Americ
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Food Producers - Trading Comments - WYN
WYNNSTAY GROUP+ (WYN, House Stock, 530p) – Another strong trading update; upgrades!
Companies: Wynnstay Group plc
In 6-month period that has been impacted by well-versed challenges from labour availability, logistical
constraints, and broad-based inflation (commodities, utilities etc.), Cranswick has once again delivered a
strong performance, both on a one and particularly a two-year basis. H1 22 sales increased by 6.4%, with
EBIT ahead by 12.3% - 29.0% and 46.8% respectively over two-years, underpinned by a combination of
elevated demand and new facilities/ business wins. We leave our profit forecasts
Companies: Cranswick plc
Companies: Genus plc
We were impressed with Diageo’s presentation as it once again demonstrated its ability to outperform the spirits market, which is itself in a strong position to outperform the drinks industry. Buy and hold.
Companies: Diageo plc
Companies: Origin Enterprises Plc
Origin Enterprises (‘Origin’) the provider for crop inputs, specialist agronomy advice and digital
agricultural solutions to the Irish/UK, European and LATAM farming communities has today
published its Q1 FY22F (August to October) trading update. We note the Group generates c90% of
its operating profit in H2 given the planting cycle so Q1 tends to be seasonally quieter.
Overall, Origin has made a strong start to FY22F which has been driven by favourable autumn/winter
planting levels compared to
Britvic’s Healthier People, Healthier Planet strategy proactively addresses the key environmental, social and governance (ESG) issues it faces, including consumers’ health, packaging and waste, water usage, and supply chain management. Its sustainability targets for 2025 are the continuation of ongoing actions to meet stakeholders’ expectations and contribute to a more sustainable future. At the same time, management looks far beyond the targets and takes a broad ESG approach towards both busine
Companies: Britvic plc
AG Barr’s (Barr) recent unscheduled trading update (20th July) made for pleasing reading, leading to a 15% upgrade to our FY22 forecasts. Barr has today provided a more detailed breakdown of the Group’s H1 22 outperformance, reflecting both robust underlying demand and some specific one-off events. We leave our recently upgraded FY22 profit expectations unchanged, though we do raise our under review FY23 forecast by 6.4% to EPS of 28.4p. Barr is a very high-quality business in our view, with a s
Companies: A.G. BARR p.l.c.
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
Companies: AMYT BAG BVC BRSD CLG CML FBD GDWN INV MACF MNZS MIO NRR NSF NBI MATD PREM QFI RUA SCS STVG SUR SNX UPGS VAST VLS
Nichols has enjoyed a stronger than anticipated Q3, prompting the management to issue a positive 9m trading update. This signals a full year outcome “ahead of current market expectations.” Good momentum has been seen across the UK and Internationally. Looking ahead to 2022 the challenge will be managing inflationary pressures but history shows Nichols has a good track record on this front. We upgrade our FY21 PBT by 17%. For FY22 we upgrade by 7% to bring us into line with consensus. With the co
Companies: Nichols plc
Cake Box’s interim results, covering the 6 months to 30th September 2021, capture a period of strong sales recovery, continued double digit LFL franchise sales growth and accelerated franchisee store openings. Profit growth is a very strong at 122% to CPTP of £3.7m, EPS of 7.5p. An interim DPS of 2.5p is proposed, up 35% yoy. We upgrade our expectations post today’s update, raising FY22 CPTP by c8% to £7.0m and EPS to 14.7p. A net cash position of £7.0m is expected. With the potential for c400 s
Companies: Cake Box Holdings Plc
This is our first report on Pond Technologies and we look to provide a detailed account of the various drivers that will be responsible for the company’s growth in the coming years. The company’s business is divided into 3 units – Pond Carbon, Pond Naturals, and Pond Biotech. Each of these segments are critical growth drivers. The market assumes that Pond's stock is fairly valued at existing levels, which is why the fluctuation is negligible, but this is bound to change. The latest partnerhips w
Companies: Pond Technologies Holdings Inc.
Capital Metals (Capital) is developing the high-grade Eastern Minerals Project in Sri Lanka, producing ilmenite, rutile, zircon and garnet for sale. On nearly every measure, the project has superior resource metrics; we see it as fundable and generating high returns for shareholders. We also expect the resource to grow and give Capital options on expansion or mine life extension. The key catalyst, for us, was the acceptance of the Environmental Impact Assessment (EIA) on 23.11.2021, following wh
Companies: Capital Metals plc
An exceptional H1 EBIT, with strong beats everywhere, which, for a large part, will drive the FY21-22 EBIT growth. A strong upgrade is expected for consensus’ full-year expectations, although H2 is expected to slow. The performance can justify the rich valuation, but we see more upside for peers.
Companies: Remy Cointreau (RCO:EPA)Remy Cointreau SA (RCO:PAR)
Britvic’s recovery continued in H2, with continued growth in at-home channels while out-of-home rebounded. GB and Brazil both posted revenue growth, while Other International was affected by weaker performance in France, caused – among other things – by poor summer weather. Organic revenue growth was 6.6%, while adjusted EBIT was up 10% on the same basis. Adjusted EPS was up 2.5% to 44.3p, as it was adversely affected by a one-off deferred tax charge. The dividend per share is 24.2p, up 12%. Cur