Slowly easing inflationary pressures continue to trickle through the corporate world. The latest example came from bottling firm Coca-Cola HBC this morning, which downgraded its cost expectations for the year.
(Bloomberg) — Slowly easing inflationary pressures continue to trickle through the corporate world. The latest example came from bottling firm Coca-Cola HBC this morning, which downgraded its cost expectations for the year.
Here’s the key business news from London this morning:
In The City
Coca-Cola HBC AG: The company boosted its full-year forecast for organic revenue growth while downgrading its expectations for the cost of goods sold, saying inflationary pressure are starting to ease.
- The Switzerland-based firm now expects COGS per case to rise by high-single digits in 2023, down from previous guidance in the low teens
- “While some markets continue to face a challenging consumer environment, revenue per case has been improved through careful price and mix management enhanced by data, insights and analytics,” Chief Executive Officer Zoran Bogdanovic said in a trading update
Flutter Entertainment Plc: The Dublin-based gambling giant turned a profit in its US business FanDuel in the first half of the year, ahead of a plan to publicly list shares in New York. US first-half adjusted earnings before interest, tax, depreciation and amortisation came in at £49 million.
- The company also said it expects the secondary listing to happen late in the fourth quarter or early in the first quarter of next year. It could later move its primary listing to New York from London
Severn Trent Plc: The company faces an environment class action lawsuit in London over allegations it abused its dominant position in the utilities market and underreported instances where it pumped sewage into open water.
In Westminster
British banks have already got a taste of what it’s like to be drawn into the global culture wars. Now, the country’s consumer brands, including coffee chain Costa and shoemaker Dr. Martens Plc, are facing scrutiny for their own efforts to cater to their increasingly socially conscious customers.
Meanwhile, the UK is headed for five years of lost economic growth as the government fails in its goal to “level-up” the country’s regions and reduce inequality, influential think tank the National Institute of Economic and Social Research said.
In Case You Missed It
Amazon.com Inc. is in talks to join other tech companies as an anchor investor in Cambridge-based chip designer Arm’s initial public offering, a person familiar with the matter told Bloomberg, part of preparations for a deal that could raise as much as $10 billion.
Arm, which is backed by SoftBank Group Corp., has also held discussions with Intel Corp. and Nvidia Corp regarding its offering. The deal is expected next month.
Looking Ahead
Tomorrow we’ll get updates from Flutter rival Entain Plc, retailer of Watches of Switzerland Group Plc, and Deliveroo Plc.
The food delivery firm’s growth in its core UK and Ireland markets may not be sufficient to offset a decline in other regions, says Bloomberg Intelligence’s Diana Gomes. While cost cuts and its departure from some countries make Deliveroo’s full-year profit target “feasible,” key things to watch are order rates and active-user metrics, Gomes says.
Deliveroo listed in London in 2021 and was Britain’s last sizable retail IPO. The company’s shares have lost nearly 70% since going public, even after recouping some 40% since the beginning of the year.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
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