FTSE 100 Falls, Led by Unilever After H1 Results
The FTSE 100 fell, led by Unilever after the consumer goods
giant posted weaker first-half pre-tax profit. Unilever shares drop
4.4%. "An increase in raw material, packaging and distribution
costs is an unwelcome development given the differing speeds of
global economic recovery, and the overall pre-tax profit number has
slipped by 3.6% due to a combination of cost and comparison
factors," Interactive Investor analyst Richard Hunter says. A
negative read-across from the results sends shares in sector peer
Reckitt Benckiser down 1.6%. Meanwhile, 3i Group shares rise 3.8%
after the investment manager posted an increase in its net asset
value per share and a total return of 12.2% for the first
quarter.
Companies News:
DotDigital Group Expects to Beat FY 2021 Adjusted Earnings
Views
Marketing-sofware company dotDigital Group PLC said Thursday
that it expects adjusted earnings for fiscal 2021 to beat market
forecasts after a strong finish to the year and that it intends to
pay a final dividend.
---
Volution Forecasts FY 2021 Earnings Ahead of Expectations
Volution Group PLC said Thursday that it expects to report
earnings ahead of market expectations for the year ending July
31.
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Gusbourne Expects 1H Net Revenue Surge, to Explore GBP15 Mln
Fundraising
Gusbourne PLC said Thursday that it expects a 59% rise in net
revenue for the first half and will explore an equity fundraise of
up to 15 million pounds ($20.6 million).
---
Medica Sees Increasing Demand as Elective Procedures Recover
Medica Group PLC said Thursday that its first-half performance
has been positive in the U.K. and Ireland against a backdrop of a
sustained recovery in activity in diagnostic services.
---
Judges Scientific Says 1H Orders, Sales Recovered
Judges Scientific PLC said Thursday that first-half orders and
organic sales rose, reflecting an economic recovery in much of the
world, and that it delivered strong profitability in each of the
first six months of the year.
---
JTC Reports Good 1H Momentum, Expects to Meet Full-Year
Views
JTC PLC said Thursday that it performed well in the first half
of the year despite macroeconomic uncertainty caused by the
coronavirus, and that it expects its full-year results to meet
market expectations.
---
Great Portland Estates Publishes Sustainable Finance
Framework
Great Portland Estates PLC said Thursday that it has published a
sustainable finance framework, for providing potential future debt
instruments to projects that have a positive environmental or
social effect.
---
Strix Sees Strong Revenue Growth in 1H, Full Year
Strix Group PLC said Thursday that it expects significantly
higher revenue in the first half of the year.
---
Personal Group Says 1H Revenue Rose; Business Is in Line With
Views
Personal Group Holdings PLC said Thursday that revenue for the
first half of 2021 rose, and that it is trading in line with
management's expectations.
---
Breedon Swung to 1H Pretax Profit, Declares First Dividend
Breedon Group PLC said Thursday that it swung to a pretax profit
in the first six months of the year and declared its maiden
dividend.
---
KRM22 Expects Flat 1H Adjusted Loss, Lower Revenue
KRM22 PLC said Thursday that it expects to report a stable
adjusted loss and lower revenue for the first half of 2021.
---
Restore Shares Jump on GBP743 Mln Takeover Approach by Marlowe
-- Update
Shares of Restore PLC rose in early trade Thursday after Marlowe
PLC said it made a 743 million pound ($1.02 billion) cash-and-share
offer approach to the information and data-management services
provider, which was rejected.
---
VP Says It is Performing in Line With Expectations
VP PLC said Thursday that it is performing in line with
expectations.
Market Talk:
Unilever's 1H Raises More Questions Than Answers, Citi Says
0755 GMT - Unilever's sales boost in 2Q isn't enough to answer
concerns around the group's future, according to Citi. The
consumer-goods producer delivered an organic sales growth of 5.0%
on year, beating a company-compiled consensus of 4.8%, Citi says.
Still, rising costs remain a drag, it says. "The cut in full-year
margin guidance, due to cost inflation, may reignite the debate on
the likelihood of advertisement and promotion cut in the second
half to protect margins [...] the first half brings more questions
than answers on the company's ability to navigate the inflationary
cycle without making painful trade-offs," the U.S. bank says. Citi
has a buy rating on the stock and a target price of GBP51.
---
Unilever Seen as Solid Despite Struggling Stock
0746 GMT - Unilever shares continue to struggle but the group's
fundamentals remain solid, according to Interactive Investor
analyst Richard Hunter. The consumer-goods producer hosts many
strong brands and has experienced mixed results as different
economies recover at different speeds from the pandemic, Hunter
says. Specifically, increasing raw material, packaging and
distribution costs represent an unwelcome development given the
differing speeds, he says, adding that progress Unilever has made
during the pandemic has been slowed by these pressures. "Over the
last year the shares have dipped by 1%, as compared to a rise of
12.7% for the wider FTSE 100," Hunter says. Still, market consensus
remained a cautious, reflecting the power of the group and the
diversity of its products and geographies, the analyst says.
---
Pound Could Rise After ECB Decision Before Focus Turns to UK
Data
0733 GMT - The euro could edge lower against the pound,
providing some support to the sterling-dollar exchange rate, if the
European Central Bank signals it won't scale back stimulus any time
soon at Thursday's meeting, Rabobank says. "That said, for GBP to
push back more noticeably against USD strength, Friday's UK retail
sales data will likely have to surprise on the upside," Rabobank's
Jane Foley says. The consensus forecast is for retail sales to drop
0.1% in June compared to a month ago after falling 1.4% in May, she
says. Friday's flash U.K. services and manufacturing purchasing
managers' index surveys could also be directional for the pound,
she says. The ECB's policy decision is at 1145 GMT. EUR/GBP falls
0.3% to 0.8582.
Contact: London NewsPlus, Dow Jones Newswires;
paul.larkins@wsj.com
(END) Dow Jones Newswires
July 22, 2021 04:32 ET (08:32 GMT)
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