Performance Updates From Two FTSE Stocks: Experian Plc And Premier Foods Plc

Experian Plc

Experian Plc (LON: EXPN) is a Dublin, Ireland based data management company. It was incepted way back in the early nineteenth century and became a remarkable success story about a business built on innovation and global enterprise. The company is engaged in gathering, analysing, combining and processing data for controlling and achieving personal goals. The company’s strategy is primarily focused on providing world-class expertise to organisations. The business activities of the company are divided into two main segments, Business-to-Business and Consumer Services. Through the former segment, the company support businesses in providing remarkable experiences to their customers, while with the latter segment, the company helps score of people better manage and improve their financial position, specifically located in the UK, USA, India, Brazil and Colombia.

Third-quarter trading update

The company on 17 January 2020 released its trading updates for the period of 3 months ended 31 December 2019.

The company reported that during the quarter, the total revenue was up by 9 per cent and organic revenue growth was 7 per cent, both at constant and actual exchange rates (AER). Geography-wise, for the ongoing activities only, the total revenue growth of North America at actual and constant exchange rate both stood at 11 per cent. Latin America on actual basis showed growth of 10 per cent and 19 per cent on CER (constant exchange rates) basis. UK and Ireland reported a negative growth of 3 per cent on both AER and CER basis, while EMEA/Asia Pacific had negative growth of 4 per cent on AER basis and negative revenue growth of 1 per cent on CER basis.

The company reported strong growth in North America, despite the impact of one-off third-party breach support revenue in the previous year. Segment-wise, B2B performed well with organic growth of 11 per cent, while the Consumer Services segment reported organic revenue growth of 7 per cent.

Other decent performance was reported from the Latin America market, where the total revenue growth at constant exchange rate was 19 per cent, and the company reported that its on track to launch positive data in Brazil and by the end of the month is expecting commercial offers with positive data.

There was some disappointment from the UK and Ireland markets, where the organic revenue declined by 3 per cent on a CER basis, though the company has made encouraging progress in digital services. Also, there was 1 per cent organic revenue growth in Consumer Services. In EMEA/Asia Pacific region too there was some disappointment, but here too Data performed strongly, with organic revenue growth of 10 per cent.

Share Price Performance on LSE

On 17 January 2020, at the time of writing at 8:19 AM GMT, Experian Plc shares were hovering at GBX 2,618.00 levels, down by GBX 2.00 or 0.08 per cent from its last day’s closing price of GBX 2,620.00. The shares of the company touched a fresh 52 weeks high of GBX 2,702.00, on 16 January 2020, while they had witnessed a 52-week low of GBX 1,868.00 as on 28 January 2019 trading.

Company’s total Market Capitalisation as on 17 January 2020 was reported at £23.72 billion, it had a free float of 903.7 million shares from an outstanding share of 908.24 million. Indicating slightly lower volatility, stock’s beta stood at 0.95.

Premier Foods Plc

Premier Foods Plc (LON: PFD) is one of the truly British companies, committed to the UK. Company’s various brands have been part of the nation’s life for more than a century. Around 96 per cent of products sold by the company are made in the United Kingdom itself, not only this the ingredients, from which they are made are sourced from British suppliers and farmers.

The company is operating into the ambient food sector, which continues to be the biggest sector in the grocery market of the United Kingdom. As far as the grocery business is concerned, the company has been concentrating primarily on four key sub-segments (Quick Meals, Flavourings & Seasonings; Cooking Sauces & Accompaniments; Snacks & Soups and Ambient Desserts). The company is also having Sweet Treats business, which looks after the expansion of Ambient Cakes category.

The group also has a separate segment of other branded food products and non-branded food offerings, apart from the four categories of the grocery business. This segment, on behalf of many of the food retailers of UK is responsible for manufacturing products, such as cakes and desserts. On-branded beverages and dessert products are being manufactured and sold by the Knighton Foods business of the company.

Third-quarter trading statement

The company on 17 January 2020 released its trading updates for the 13 weeks ended 28 December 2019, highlighting that the group sales improved by 2.6 per cent for the quarter and up 2.5 per cent on Q3 year to date at £262.2 million, as compared to £255.6 million as of Quarter 3 2018/19. The decent performance was reported from the UK sales, which reported 10th consecutive quarter of growth and was up by 3.6 per cent for the quarter and 3.3 per cent Q3 year to date. (The segment contributes about 94 per cent of the total annual sales of the group)

Reflecting the lapping of softer comparatives associated with impacts from the Group’s logistics transformation programme a year ago, the non-branded Sweet Treats sales was back in blue and reported a sales growth of 8.8 per cent in the quarter as compared to the last year.

The company also reported that in the last quarter of the year, a range of mini pies and tarts including Cherry Bakewells and Fruit Pies are scheduled to be launched along with Plantastic grain pots and Cadbury Crème Egg choc cakes for Easter.

Share Price Performance on LSE

On 17 January 2020, at the time of writing at 9:21 AM GMT, Premier Foods Plc shares were hovering at GBX 44.40 levels, up by GBX 1.40 or 3.26 per cent from its last day’s closing price of GBX 43.00, a fresh 52 week high in the intraday trading, while they had witnessed a 52-week low of GBX 29.80 as on 18 October 2019 trading.

Company’s total Market Capitalisation as on 17 January 2020 was reported at £364.07 million, it had a free float of 668.89 million shares from an outstanding share of 846.68 million. Indicating a higher volatility, stock’s beta stood at 1.32.

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