Two FTSE-100 Stocks to Watch: Coca Cola HBC AG & SSE Plc

Two FTSE-100 Stocks to Watch: Coca Cola HBC AG & SSE Plc

Coca Cola HBC AG

Coca Cola HBC AG (CCH) is a Switzerland based company engaged in the business of production and distribution of non-alcoholic beverages. The company is a bottler of Coca Cola Products. The company distributes Coca-Cola, Coca-Cola Zero, Coca-Cola Light, Fanta, and Sprite as well as water, energy drinks and juice.

CCH-Recent News

On 14th November 2019, Coca Cola HBC and Coca-Cola HBC Finance announced the issue of 10-year fixed-rate Euro denominated Notes. The notes are issued under the Medium-Term Note Programme for €5 billion Euro.

CCH-Trading Update

On 13th November 2019, Coca Cola HBC announced its Q3 trading update. The company despite, poor weather conditions, showed robust performance for the period. The company’s FX-neutral revenue surged by 3.4 per cent for the period, while the volumes were up by 1.1 per cent for the quarter.

CCH-Financial Highlights - H1 Financial Year 2019 (28th June 2019, €, million)

(Source: Interim Report, Company Website)

In the first half of the Financial Year 2019, net revenue surged by 3.8 per cent (actual basis) to €3,352.4 million and by 3.4 per cent on a constant currency basis. The revenue increased because of the favourable currency movements in the Nigerian Naira and Swiss Franc. The company reported volume growth of 2.2 per cent with improvement in all the segments led by Sparkling beverages. Comparable EBIT for H1 FY2019 surged by 4.7 per cent to €325.1 million and comparable EBIT margin improved by 10 bps to 9.7 per cent, driven by decent volume and revenue growth and 30 bps cut in the operating expenses as a percentage of revenue. Comparable Net profit surged by 0.5 per cent to €222.8 million. In H1 FY2019, Comparable reported earnings per share stood at €0.612 and reported an increase of 1.5 per cent as compared with the corresponding period of the previous year. In the first half of 2019, free cash flow reduced by 37.5 per cent to €79.3 million against the same period in 2018, due to reduced cash from operating activities and with increased capital expenditure. The Board has approved a dividend per share of €0.54 cents in H1 FY2019.

In the H2 FY2019 period, revenue growth will expand as expected by the group against the H1 FY19 in all three divisions and particularly in Emerging markets. The company expect this increase in revenue, due to the quicker volume growth in all segments, while an increase in revenue per case on a CER basis is projected to remain at the pace of the H1 FY2019.

Considering the present favourable spot rates and the hedged positions, the company believe that the adverse effect from FX movements on the P&L in the FY2019 will be around €20 million. This is lower by €30 million from the prior spot-rate determined in guidance.

Input costs have ensued in line with the company’s prospects. The company have contracts in place for most of the raw materials that they use and will assume low-single-digit growth in currency-neutral input cost per case for the FY2019. For the FY2019, the company expects currency-neutral basis revenue progress to be in the range of 5 per cent to 6 per cent and to deliver one more year of margin growth.

CCH-Share price performance

Daily Chart as at 14-November-19, after the market close (Source: Thomson Reuters)

On 14th November 2019, post-market close, Coca Cola HBC AG shares clocked a market price of GBX 2,556 per share. The company’s total market capitalisation stood at £9.26 billion.

On 04th July 2019, the shares of CCH have touched a new peak of GBX 2,950.00 and reached the lowest price level of GBX 2,094.19 on 23rd November 2018 in the last 52 weeks. The company’s shares traded at 13.35 per cent lower from the 52-week high price mark and 22.05 per cent higher the 52-week low price mark at the last trading level as can be seen in the price chart.

The company’s 5-day stock's daily average traded volume was 1,031,476.00; 30 days daily average traded volume- 702,102.23- and 90-days daily average traded volume – 631,152.59. The volatility of the company’s stock was 23 per cent lower as compared with the index taken as the benchmark, as the beta of the company’s stock was recorded at 0.77 with a dividend yield of 2.00 per cent.

The shares of the company have delivered a negative return of 5.30 per cent in the last quarter. The company’s stock surged by 10.70 per cent from the start of the year to till date. The company’s stock has given investors 17.05 per cent of a positive return in the last year.Â

SSE Plc

SSE Plc (SSE) is a Perth, the United Kingdom-headquartered integrated energy utility company, with operations and investments across the UK and Ireland, including regulated electricity networks and renewable sources of energy.

SSE-Recent News

On 13th November 2019, SSE announced its interim results for the period ending 30th September 2019.

SSE-Financial Highlights – H1 Financial Year 2020 (30th September 2019, GBP, million)

(Source: Interim Report, Company Website)

In the first half of the financial year 2020, driven by a decline in revenue from Business Energy and Electricity Transmission for the period, the company’s revenue declined to GBP 3,052.2 million as against GBP 3,317.7 million in H1 FY2019. The company’s total gross profit stood at GBP 956.1 million in H1 FY2020 versus GBP 181.5 million in H1 FY2019. The company’s underlying operating profit (continuing operations) in H1 FY2020 was at GBP 377.2 million versus GBP 358.3 million in H1 FY2019. The company’s reported operating profit (continuing operations) in H1 FY2020 was at GBP 347.5 million versus a reported operating loss of GBP 184.6 million in H1 FY2019. The company’s adjusted PBT (profit before tax) stood at £228.5 million in H1 FY2020 as against GBP 218.7 million in H1 FY2019. The company’s reported PBT (profit before tax) was at GBP 128.9 million in H1 FY2020 versus an LBT (loss before tax) of GBP 284.6 million in H1 FY2019. The company’s statutory LAT (loss after tax) from continuing and discontinued operations was at GBP 387.5 million in H1 FY2020 versus a LAT of GBP 244.4 million in H1 FY2019. The company’s basic and diluted loss per share (continuing and discontinued operations) per share were at 42.1 pence versus a basic and diluted loss per share (continuing and discontinued operations) of 28.6 pence in H1 FY2019.

SSE-Share price performance

Daily Chart as at 14-November-19, after the market close (Source: Thomson Reuters)

On 14th November 2019, post-market close, SSE Plc shares clocked a market price of GBX 1,306.50 per share. The company’s total market capitalisation stood at £13.49 billion.

On 13th November 2019, the shares of SSE have touched a new peak of GBX 1,335.00 and reached the lowest price level of GBX 997.80 on 23rd May 2019 in the last 52 weeks. The company’s shares were at 2.13 per cent lower from the 52-week high price mark and 30.93 per cent higher than the 52-week low price mark at the last trading level as can be seen in the price chart.

The company’s 5-day stock's daily average traded volume was 3,170,660.80; 30 days daily average traded volume- 3,464,171.33- and 90-days daily average traded volume – 3,740,017.53. The volatility of the company’s stock was 38 per cent lower as compared with the index taken as the benchmark, as the beta of the company’s stock was recorded at 0.62 with a dividend yield of 7.06 per cent.

The shares of the company have delivered a positive return of 17.70 per cent in the last quarter. The company’s stock surged by 20.80 per cent from the start of the year to till date. The company’s stock has given investors 9.70 per cent of a positive return in the last year.Â

 

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