Davy Research

Food, beverage & pharma

Food, beverage & pharma

FY results to display strong underlying earnings growth ex-currency

Kerry will release FY 2016 results on February 21st. We expect the group to deliver low-double-digit EPS growth in constant currencies, with FX a c.5% headwind on the reported outturn....

Feb 14 2017 | Jack Gorman | Company Report | 4 pages

Careful navigation required on margin and returns

A lower-than-expected margin out-turn in FY2016 prompted us to re-assess Givaudan’s underlying costs base and investment plans. We believe that any risk to margin and returns is more...

Feb 14 2017 | Jack Gorman | Company Report | 9 pages

Turning cautious on near-term margin potential as dairy markets reflate; moving to 'Neutral' rating

After two consecutive years of margin progression, we believe Danone will struggle to lift underlying operating margins (ex-WhiteWave) in 2017. Margin development from 2018 onwards will...

Feb 9 2017 | Cathal Kenny , Declan Morrissey | Company Report | 28 pages

Fair value uplift as investment activity intensifies; €17 price target; reiterate 'Outperform' rating

Recent quarters have been particularly eventful across the Malin portfolio. We estimate that investment activity and valuation uplifts could have increased the group’s observable fair...

Jan 23 2017 | Jack Gorman | Company Report | 5 pages

Value trumping growth; confidence on earnings outlook; DSM a top pick

In our 2016 mid-year review, we wrote that we were exiting the most benign investment period for the European food and beverage sector – what we did not expect, however, was the...

Jan 16 2017 | Cathal Kenny | Sector Report | 30 pages

Forecasts upgraded after strong Q3 outturn

A modest but welcome upgrade to FY guidance means that SZU is on track to deliver 60-70% growth in operating profit in the current year – back in absolute terms to 2009/10...

Jan 12 2017 | Jack Gorman | Company Report | 3 pages

American journey

Greencore’s proposed acquisition of Peacock Foods is a transformational deal for the group and its shareholders. It catalyses a quadrupling of capital employed in North America to...

Dec 20 2016 | Cathal Kenny | Company Report | 9 pages

Food for thought: from pot noodles to the 2017 Pirelli calendar

In the second of an occasional series focusing on issues impacting the food sector, we look at China’s falling consumption of pot noodles; the transient attraction of processed,...

Dec 8 2016 | John O'Reilly | Sector Report | 5 pages

Upgrading forecasts, and H1 preview

We expect Cranswick to demonstrate good operational and strategic progress in its first-half results, due November 29th. Our 17% year-on-year EBIT growth forecast in H1 is underpinned...

Nov 23 2016 | Declan Morrissey | Company Report | 5 pages

Valuing Greencore...starting with the UK

Greencore’s share price is down c.15% year-to-date, a function of equity market factors and what we believe to be concerns relating to operational leverage in its North American...

Nov 11 2016 | Cathal Kenny | Company Report | 5 pages

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