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Highlights:
- Several London-listed companies are to announce their results this week, which may lead to some volatility in the market.
- FMCG major Reckitt Benckiser and pharma giant GSK announced their results on Wednesday.
It's a big week for the UK market as several companies are set to announce their H12022 and Q22022 results. Some volatility is expected in the market due to these results, with companies stressing that the cost-of-living crisis is likely to impact their profits.
Let us take a look at two companies that announced their results on Wednesday and how their stock prices reacted.
Reckitt Benckiser (LON:RKT)
The Fast Manufacturing Consumer Goods (FMCG) maker reported solid performance in the first half of 2022, with its revenue rising 8.6% to £6.9 billion on a like-for-like basis. The company announced that 70% of its portfolio that is less sensitive to COVID-19 saw double-digit growth. It also added that its cost-cutting measures or 'productivity programme' helped it save £370 million during the period.
For the second quarter, the revenues climbed 11.9% on a constant currency basis, significantly higher than the expected 6.8%. Its prices rose by 9.7% during the period, while the volume increased by 2.2%, indicating its products continued to sell despite the rising prices.
In the wake of solid growth, the company has raised its growth forecast for the year, with expectations of +5-8%. Its adjusted operating margins are also expected to grow.
Shares of the Dettol maker rallied on Wednesday following the announcement of results. As of 1:41 pm GMT+1, the stock was trading 2.64% higher at GBX 6,542.00. It reached an intra-day high of GBX 6,800.00. The company holds a market cap of £45,601.71 million, and its 12-month return currently stands at 4.71%, while the year-to-date return is at 2.84%.
GSK Plc (LON: GSK)
The British pharma giant posted a boost in the sales of its shingles vaccine, Shingrix, which took its total revenue up 19% for the second quarter of 2022. The company delivered revenue of £6.9 billion during the period, beating expectations of £6.3 billion.
Sales of Shingrix contributed £731 million to the revenue, more than double at constant exchange rates, while HIV treatments fetched £1.4 million. The company has warned that sales of its solutions for COVID-19 will be substantially lower in the second half of 2022.
Following the solid growth, GSK now expects its revenues to rise by 6% and 8% this year, higher than its earlier forecast of 5% to 7%. Similarly, its adjusted operating profit is expected to grow between 13% to 15%, from 12% to 14% previously.
Shares of the company failed to mirror its Q2 performance and were down 0.56% at GBX 1,745.20 as of 1:55 pm GMT+1 on Wednesday. It currently has a market cap of £71,382.03 million and has provided investors with a return of 24.90% over the past year. Recently, it demerged its consumer healthcare arm into a separate entity Haleon, making GSK a drugs and vaccine-only company.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
