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HIGHLIGHTS
- JD Sports’ profit before tax surged to £439.5 million in H1 2021 compared to £61.9 million in H1 2020.
- Total sales of Premier Foods over a two-year basis increased 6.3% for Q1 ended 3 July 2021.
Consumer spending during the pandemic remained extremely conservative as people avoided and delayed unnecessary expenditure. Consumer products constitute a category that is always in demand irrespective of the market conditions. Furthermore, rising vaccination rates, reopening of the economy, and increasing pent-up demand have further driven sales of consumers goods through retail outlets and online stores. Investors desiring consistent returns on their investments often add consumer stocks to their portfolios.
(Data source: Company Release)
Here we take a look at two FTSE-listed consumer stocks and explore the investment prospect in them.
JD Sports Fashion Plc (LON: JD.)
JD Sports Fashion is sportswear, fashion, and outdoor brand retailer based in Greater Manchester and operates shops across the UK, the US, Asia, Europe, and Australia. The shares of the company last traded at GBX 1,151.00, up by 9.72% on Tuesday 14 September 2021. The market cap of the company stood at £10,821.77 million.
For H1 ended 3 July 2021, JD Sports revenues grew to £3,885.8 million compared to £2,544.9 million for the same period in 2020. The company’s profit before tax surged to £439.5 million in H1 2021 compared to £61.9 million in H1 2020.
JD Sports Fashion shares have returned 46.59% in the last one year to shareholders.
Premier Foods Plc (LON: PFD)
Premier Foods is a UK-based food manufacturing company. The shares of the company closed at GBX 120.00, down by 1.80% on Tuesday 14 September 2021. The market cap of the company stood at £1,050.21 million.
For Q1 ended 3 July 2021, the total sales of Premier Foods over a two-year basis increased 6.3%, at the upper end of the company’s 5%-6% guidance and branded sales increased by 9.3%.
For year ended 3 April 2021, Premier Foods’ revenue reached £947.0 million and adjusted pre-tax profit stood at £117.9 million. The company’s board proposed a final dividend of 1.0 pence per share to shareholders for the period.
Premier Foods shares have returned 38.57% in the last one year to shareholders.
Bottom line
Investors keen on stable returns on their investments often add consumer stocks to their portfolios as consumer companies are deemed consistent performers and pay regular dividends to shareholders despite fluctuations in the macroeconomic scenario.
