Persisting inflation is hindering Britain’s largest grocer from delivering a profit growth in 2024. But even as the price battle with discount chains heats up, Tesco has managed to retain its roughly 27% market share. Elsewhere, Biden continues his Irish tour and is schedule to meet political leaders in Dublin today.
(Bloomberg) — Persisting inflation is hindering Britain’s largest grocer from delivering a profit growth in 2024. But even as the price battle with discount chains heats up, Tesco has managed to retain its roughly 27% market share. Elsewhere, Biden continues his Irish tour and is schedule to meet political leaders in Dublin today.
Here’s the key business news from London this morning:
In The City
Darktrace Plc : The cybersecurity firm raised its full-year outlook based on strong preliminary margins in the third-quarter as well as plans for operations and investment in the fourth-quarter.
- It now sees its adjusted Ebitda margin for 2023 at or around 19% compared with 16%-18.5% previously, while its year-over-year revenue growth is forecast at the top of its previous range of 29.5%-31%
Tesco Plc: Britain’s largest grocer reported an adjusted operating profit of £2.63 billion, matching the average analyst estimate, with sales growth across all operations in 2023.
- The retailer, however, expects its retail adjusted operating profit to be “broadly flat” in 2024 amid what its Chief Executive Ken Murphy called “unprecedented levels of inflation”
- On Wednesday, Tesco announced the first cut in milk prices in three years and extended a price freeze on more than 1,000 other everyday items, as inflation fuels a price battle with discount supermarket chains
Imperial Brands Plc: The tobacco company is on track to meet full-year expectations, with a stronger revenue performance likely in the second half of the year.
- The maker of the Blu vape brand still expects its first-half net revenue to be at a similar level to last year at constant currency, excluding the impact of its exit from Russia last year
Home Reit Plc: Talks with Bluestar Group are still ongoing, the company said in a statement, adding that it has requested another extension to the deadline for Bluestar to either announce a firm intention to make an offer or not.
In Westminster
The UK economy will do “significantly better” than the International Monetary Fund’s bleak outlook over the coming 24 months, Chancellor of the Exchequer Jeremy Hunt said Wednesday, potentially setting the government up for an election next spring. In remarks made in Washington, Hunt rejected the IMF’s forecast for the UK to shrink 0.3% this year and expand just 1% in 2024, as well as reinforced the Prime Minister Rishi Sunak’s commitment to stability.
Meanwhile, US President Joe Biden is expected to meet both the Irish President Michael D Higgins and Ireland’s Taoiseach Leo Varadkar in Dublin this Thursday, the White House said.
In Case You Missed It
In the aftermath of Brexit’s first act, the French capital continues to be a big winner—regardless of the garbage. This week’s In the City podcast takes a look at President Emmanuel Macron’s business agenda as Paris becomes an increasingly important hub for global finance. Listen here:
Looking Ahead
Recruitment firm Hays Plc and Dr Martens Plc are among the companies slated to update investors on their performance as the week draws to a close.
The bootmaker’s fourth-quarter sales could mirror the third-quarter with tighter discretionary spending in mid-income households, according to Bloomberg Intelligence. “Sales could be driven by direct-to-consumer in Europe and China’s reopening, while those in the US may be limited by bottlenecks at the Los Angeles distribution center,”, BI analysts Andrea Ferdinando Leggieri and Deborah Aitken wrote.
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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