8:15am: FTSE 100 opens higher as investors digest earnings
The FTSE 100 opened higher as investors digested results from a number of index heavyweights.
At 8:15am, London’s blue-chip index was up 0.2% at 7,644.03.
With AstraZeneca, Unilever and British American Tobacco reporting earnings today, plus Compass, Anglo American and SSE, that’s equivalent to almost 20% of the FTSE 100 in terms of weighting.
Early reactions were mixed
AstraZeneca fell 1.9% despite reporting a rise in sales and profits in the fourth quarter.
Derren Nathan, head of equity research, Hargreaves Lansdown said: “AstraZeneca has shrugged off falling sales of COVID-19 medicines with a strong 2023 performance. And with three new medicines approved since the third quarter, it’s not resting on its laurels.”
Unilever rose 3.0% after reporting a return to volume growth for sales, alongside a new share buy back.
SSE is down 2.2% although the company maintained its earnings forecast but said that turbine installation at the Dogger Bank wind farm has been hit by weather conditions, which may mean full operation is not achieved until 2025.
7:51am: Unliever in new buyback but performance "needs to improve"
Unilever PLC (LSE:ULVR) reported underlying sales growth in the fourth quarter as it launched a new $1.5 billion share buyback.
The FTSE 100-listed firm which makes Hellmann’s mayonnaise and Dove soap said underlying sales in the fourth quarter rose 4.7% to €14.2 billion, although on a GAAP reported basis sales fell 3.0%.
For 2023 as a whole, underlying sales growth was 7% to €59.60 billion while operating profit fell 9.3% to €9.76 billion.
Chief Executive Hein Schumacher said there was more to do.
"Today's results show an improving financial performance, with the return to volume growth and margins rebuilding.”
“However, our competitiveness remains disappointing and overall performance needs to improve.”
Beauty & Wellbeing saw underlying sales rise 7.9% compared to last year, Personal Care sales rose 6.4% and Nutrition sales rose 4.7%. Ice cream sales dropped 0.4%.
A new €1.5 billion buyback was approved to be conducted during 2024.
Unilever said the 30 Power Brands (around 75% of turnover) were accretive to growth and margin, with underlying sales up 8.6%.
The company expects underlying sales growth for 2024 to be within its multi-year range of 3% to 5%, with more balance between volume and price.
7:45am: BAT sees progress in new category sales
British American Tobacco PLC (LSE:BATS) on Thursday reported modest progress in underlying profitability as new category sales, such as vapes, increased.
The FTSE 100-listed company adjusted sales in 2023 rose 1.6% to £27.28 billion supported by growth in new categories of 15.6% and resilient pricing.
BAT posted a reported loss from operations of £15.75 billion impacted by a £27.6 billion non-cash impairment charge mainly related to its US business.
Excluding this the firm reported an operating profit rose 3.1% to £12.47 billion.
Underlying diluted EPS rose 4.0% to 375.6p while the dividend was increased 2.0% to 235.52p.
Total combustibles organic revenue grew 0.6%, with an organic price/mix of plus 6.1% offset by lower volume and geographic mix mainly due to macro-economic pressures in the US impacting the premium segment
Chief Executive Tadeu Marroco said: “New Categories delivered continued volume-led revenue growth and increased profitability, driven by Vuse and Velo.”
“As a result, our New Categories portfolio has turned profitable two years ahead of our original target.”
“In combustibles, our commercial plans in the U.S. are enabling early signs of portfolio recovery,” he added.
7:00am: FTSE 100 expected to edge higher while S&P 500 closes in on landmark
The FTSE 100 is expected to open slightly higher on Thursday after US markets hit new record highs driven by gains in tech stocks.
Spread betting companies are calling London's lead index up by around 4 points after closing down 52.26 points at 7,628.75 on Wednesday.
On Wall Street, the S&P 500 hit a new intra-day high, rising 0.8%, taking it within a whisker of the 5,000 landmark - gains in technology stocks such as Nvidia, Microsoft and Meta Platforms supported the latest rise.
In Asia, Chinese consumer prices fell in January at their quickest rate in more than 14 years, data showed Thursday, as the country's leaders struggle to revive buying sentiment in the world's second-biggest economy.
The figures will add to calls for a stimulus to revive the economy.
"In plain English, it means that the Chinese efforts to boost growth and bring inflation back are not working according to the plan," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Back in London, and results from a number of FTSE 100 companies will provide the early focus - Compass, BAT, AstraZeneca, Unilever, SSE and Anglo American will report updates.
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2024-02-08 07:03:00Z
CBMihwFodHRwczovL3d3dy5wcm9hY3RpdmVpbnZlc3RvcnMuY28udWsvY29tcGFuaWVzL25ld3MvMTA0MDQ4OS9mdHNlLTEwMC1saXZlLXN0b2Nrcy1leHBlY3RlZC10by1wb3N0LW1vZGVzdC1nYWlucy1hdC10aGUtb3Blbi0xMDQwNDg5Lmh0bWzSAQA
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