Recent Business Performance Updates of Two FTSE 100 Stocks - British American Tobacco PLC and CRH PLC

Recent Business Performance Updates of Two FTSE 100 Stocks - British American Tobacco PLC and CRH PLC

British American Tobacco PLC

London, United Kingdom-headquartered, British American Tobacco PLC (LON: BATS) is one of the leading, multi-category consumer goods companies in the world with main business of tobacco. The company seeks to provide its customers with premium quality tobacco products.

Incepted in 1902, subsequent to a joint venture between the American Tobacco Company of the United States and Imperial Tobacco Company of the United Kingdom, followed by a rapid expansion that helped the company to establish a dominant position across the markets at the international level.

The company’s workforce is around 55,000 across the world and it is a market leader in 55 plus countries. Many of the world-popular brands including Rothmans, Pall Mall, Kent, Dunhill, and Lucky Strike, are owned by the company and have presence in 200 plus markets.

 

BATS-Pre closing update for H2 FY19

The company delivered solid financial performance on an adjusted basis. The constant currency adjusted operating profit growth for the company was in the upper half of the 5-7 per cent long-term guidance range for the financial year 2019.

The company’s expectations remained unchanged for US industry volumes for the fiscal year 2019, down at 5.5 per cent and between 4 to 6 per cent in FY2020.

The company saw good revenue growth and increasing market share in New Categories in the second half of the fiscal year 2019.

In Vapour market, Vuse is growing value share in the United States as Vuse Alto value share moving up by 840 basis points to 11.1 per cent in October, with total Vuse family value share at 17.5 per cent.

Vype continued to grow value share, reached 11.8 per cent in the United Kingdom, up by 260 basis points, and 19.2 per cent in France, up by 790 basis points in October, with ePod successfully launched in both markets.

BATS-Business performance for H1 FY19

(Source: London Stock Exchange)

The company’s revenue surged by 4.6 per cent  in first half of 2019 to £12,170 million, as the revenue from the strategic portfolio surged by 8.7 per cent, while adjusted revenue was up  by 5.3 per cent to £12,139 million, while on constant rates, adjusted revenue surged by 4.1 per cent, reflecting the good price/mix and variety in new categories. The company’s profit from operations plunged by 1.3 per cent in the first half of 2019 to £4,380 million, and the operating margin plunged by 210 basis points. Adjusted diluted EPS surged by 8.8 per cent to 149.3 pence and basic earnings per share surged by 4.6 per cent to 123.2 pence in H1 2019. The company’s adjusted net debt surged by 1.8 per cent to £45,532 million and net cash generated from operating activities plunged by 41 per cent to £2,288 million.

BATS-Share price performance

Daily Chart as on 28-November-19, before the market closed (Source: Thomson Reuters)

On 28th November 2019, while writing at 01:02 PM GMT, BATS shares were clocking a current market price of GBX 3,061.00 per share; which was less by 0.61 per cent in comparison to the last traded price of the previous day. The company’s market capitalisation was at £70.34 billion at the time of writing.

On 01st April 2019, the shares of BATS have touched a new peak of GBX 3,222.00 and reached the lowest price level of GBX 2,249.00 on 17th May 2019 in the last 52 weeks. The company’s shares were trading at 4.99 per cent lower from the 52-week high price mark and 36.10 per cent higher the 52-week low price mark at the current trading level as can be seen in the price chart.

The stock’s traded volume was hovering around 923,271 at the time of writing before the market close. The company’s 5-day stock's daily average traded volume was 4,436,604.20; 30 days daily average traded volume- 3,246,191.03- and 90-days daily average traded volume – 3,150,980.86. The stock has higher volatility in comparison to benchmark index as the beta stood at 1.47, along with a dividend yield of 6.59 per cent.

The shares of the company have delivered a positive return of 8.76 per cent in the last quarter. The company’s stock surged by 23.20 per cent from start of the year to till date. The company’s stock has given investors 13.05 per cent of a positive return in the last year. 

CRH PLC

Ireland-based, CRH PLC (LON: CRH) is a leading globally classified building materials company. It is one of the largest building materials group at the international level and among the biggest in North America, Europe, Asia and South America. The company's operations can be segregated in three segments:  Europe Materials, Americas Materials, and Building Products. The business spans across 30 plus nations, has operations in around 3,500 plus locations across the globe and headcount of over 90,000 people.

 

CRH Trading update for 9M period ended 30th September 2019

(Source: London Stock Exchange)

On 26th November 2019, the company released its trading update for nine-month period ended 30th September 2019. The company delivered solid performance with an increase of 27 per cent in EBITDA. The company refined its portfolio while focusing on value creation by making €0.7 billion worth of acquisitions to date and divestments of €2 billon. The company’s financial discipline was exemplary. The net debt/EBITDA is expected to be less than 2x by year-end. There has been an ongoing share buyback programme and €750 million of cash returned to shareholders on year-to-date basis. This has been another good year for the company as the EBITDA is expected to be in excess of €4.15 billion for the fiscal year 2019 due to the gained momentum in all segments, contributions from acquisitions, the impact of IFRS 16 Leases and currency tailwinds by the company.

The company sense a continuation of positive trends in both Europe Materials and Building Products. The company’s total sales for nine-month to the end of September 2019 amounted to €21.8 billion, a surge of 9 per cent (4 per cent more on a like-for-like basis) in comparison to the corresponding period in the fiscal year 2018. The company looks forward to solid market fundamentals to continue across its key markets in the Financial Year 2020.

 

CRH Financial performance for H1 FY19

(Source: London Stock Exchange) 

The company’s revenue surged by 11 per cent (surged by 3 per cent on like-for-like basis) from €11.944 billion in H1 FY18 to €13.217 billion in the first half of fiscal year 2019. The surge in Revenue was complemented by all the segments. The company’s EBITDA margin surged to 11.7 per cent in the first half of 2019 in contrast to the same period in the previous year. The earnings per share (EPS) of the company increased by 50.6 per cent to 67.8 cents from continuing operations as compared with the corresponding period of the last year. The company has recommended a dividend of 20 cents per share in the first half of fiscal year 2019, an increase in comparison to the first half of 2018.  The company reaped a profit on divestments and asset disposals amounting to €171 million in the first half of fiscal year 2019, which was higher than the previous year.

 

CRH-Stock price performance

Daily Chart as on 28-November-19, before the market closed (Source: Thomson Reuters)

On 28th November 2019, while writing at 01:09 PM GMT, CRH shares were clocking a current market price of GBX 2,980.00 per share; which was less by 1.12 per cent in comparison to the last traded price of the previous day. The company’s market capitalisation was at £23.72 billion at the time of writing.

On 27th November 2019, the shares of CRH have touched a new peak of GBX 3,053.00 and reached the lowest price level of GBX 1,960.56 on 20th December 2018 in the last 52 weeks. The company’s shares were trading at 2.39 per cent lower from the 52-week high price mark and 51.99 per cent higher the 52-week low price mark at the current trading level as can be seen in the price chart.

The stock’s traded volume was hovering around 137,607 at the time of writing before the market close. The company’s 5-day stock's daily average traded volume was 1,537,065.40; 30 days daily average traded volume- 1,279,360.23- and 90-days daily average traded volume – 1,395,441.53. The stock has higher volatility in comparison to benchmark index as the beta stood at 1.12, along with a dividend yield of 2.15 per cent.

The shares of the company have delivered a positive return of 13.31 per cent in the last quarter. The company’s stock surged by 45.53 per cent from start of the year to till date. The company’s stock has given investors 39.15 per cent of a positive return in the last year.

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