BUSINESS LIVE: decline in Diageo sales; Profits from the saga skyrocket; Pets at Home Haircut Tips

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The FTSE 100 will open at 8am. Companies with reporting and business updates today include Diageo, Saga, Pets at Home, WPP and SSP Group. Read the Business Live blog from Tuesday January 30 below.

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BAE receives £370m boost as Kazakh airliner it backs prepares to list in London

Kazakhstan’s Air Astana will be worth up to £757m when it lists in London next month, valuing BAE Systems’ stake at £370m.

The airline – owned by the British defense giant and Kazakhstan’s sovereign wealth fund – yesterday set the price range for its initial public offering (IPO).

The Air Astana buyout will offer BAE Systems – which owns 49 per cent of the airline – a windfall, depending on how much of its stake it decides to sell.

The SSP Group boosted by the rebound in leisure travel

SSP Group, which operates catering outlets at airports and train stations around the world, said on Tuesday it had started its new financial year strongly, supported by a rebound in leisure travel, and forecast that the Travel demand would remain resilient.

The group, which generates more than two-thirds of its turnover at airports, said its like-for-like sales in the three months ended December 31 rose 14.3 percent year-on-year.

The Upper Crust owner reported sales growth of more than 14 percent in the first quarter, driven by a rebound in leisure travel, and also expects travel demand to remain resilient.

“Momentum continues to be encouraging in our key growth markets of North America and Asia Pacific and we also delivered double-digit like-for-like growth in our more established markets of the UK, ‘Ireland and continental Europe,’ said Patrick Coveney, CEO. said in a statement.

Pets at Home Haircut Tips

Pets at Home Group has cut its full-year profit forecast after its retail business grew less than expected as customers cut spending on accessories for their pets.

The group, which also offers grooming and veterinary services, said it expects underlying pre-tax profit of around £132m for the year, up from its previous target of around £136m. million pounds sterling.

“Our colleagues came together during our peak period to achieve record sales, up from the previous year’s very strong performance.

“While a slower market during the peak has meant that our sales growth has not quite reached the levels we expected, the business remains well positioned to benefit from long-term growth in the sector while as we continue to gain market share and increase volumes in the food sector and deliver differentiated performance. thanks to our unique veterinary activity.

“Importantly, we will soon follow the launch of our new distribution center with the launch of our new digital platform, in line with our objective.

“Our new digital platform forms a key foundation of our growth strategy, bringing a significantly enhanced user experience to our consumers and creating opportunities to improve accessories cross-selling and further increase share of wallet. With these foundations now in place, we are well positioned for the future.

Ryanair profits hit by row with travel agents and rising fuel bill

Ryanair has cut its profit forecast for the year due to a higher fuel bill and an ongoing row with online travel agents.

The budget airline said it expects annual profits to reach £1.66 billion, down from its previous estimate of £1.75 billion.

It’s a blow for chief executive Michael O’Leary, who stands to receive an £85m bonus if the company posts a £1.8bn profit or its shares hit a target of 21 euros for 28 days.

Profits from the saga have more than doubled

Saga expects its underlying annual profit to more than double year-on-year as the over-50s specialist bets on retired and wealthy Britons being less affected by the cost of care crisis. life to meet travel demand.

The London-listed holiday and insurance company expects revenue growth of 10 to 15 percent for the full year, it said.

For the 2022/2023 year, Saga reported underlying profit before tax of £21.5 million.

In September, Saga forecast double-digit growth in annual revenue and said its underlying profits would beat market estimates.

Mike Hazell, CEO of Saga Group, said:

“For 2023/24, Saga remains on track to deliver significant revenue growth, in addition to underlying profit more than double that of the previous year1, exceeding our previous forecast.

“Our Cruise and Travel businesses had an exceptional year, welcoming around 120,000 passengers on holiday, with customers continuing to be attracted by the strength of the Saga brand and offering.

“These activities will thus return to profitability, in accordance with expectations. In the insurance industry, the market-wide inflationary environment and declining policy volumes continue to impact our performance.

“The coming year will see a continuation of these trends across our business. Reservations for the new cruise and travel seasons are robust, showing good overall progress.

Flutter, owner of Paddy Power, registers in New York, another blow for London

The owner of Paddy Power has dealt a further blow to London by considering moving its main listing to New York. Flutter shares began trading on Wall Street for the first time yesterday after a “secondary” listing.

And the company used the opportunity to reveal that it hoped to move its “primary” listing across the Atlantic, downgrading its status in London.

Diageo sales fall due to slowdown in Latin America

Diageo missed first-half sales estimates after the world’s largest spirits maker suffered a sharp decline in key Latin American and Caribbean markets.

The maker of Johnnie Walker whiskey and Tanquery gin reported a 0.6 per cent fall in organic net sales for the six months ended December 31, slightly missing analysts’ estimates that organic sales were flat .

Diageo warned in November that sales in Latin America and the Caribbean would decline by more than 20 percent due to a build-up of unsold inventory in Mexico and Brazil, where drinkers are buying fewer premium spirits .

“As previously announced in November 2023, significantly weaker performance in Latin America and the Caribbean, due to rapidly changing consumer confidence and high inventory levels, had a significant impact on the overall performance of the business.

“After conducting a review of inventory levels and monitoring performance during the critical holiday season, we have taken steps and plan further steps to reduce inventory to levels more appropriate for the current consumer environment of the region by the end of FY24. key priority.



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