Langton Capital – 2019-07-29 – PREMIUM – Heineken, JustEat, Diageo & other:
Heineken, JustEat, Diageo & other:
PREMIUM EMAIL – PLEASE DO NOT FORWARD:
A DAY IN THE LIFE:
In common with most travellers, I like to spend as little time in airports as possible.
That’s because they’re surely a means to an end and I’d just like them to do what it says on the tin. Namely, help the airlines to get me from A to B as safely and efficiently as possible.
So, that’s why it’s annoying to find that the trip from security to the gates zig-zags you through about 200m of highly-priced perfume, lingerie and handbag shops, all of which are paying 35% plus of their revenue to the airport and all of which need to gouge the traveller accordingly.
However, whilst I feel able to turn down the aftershave and frilly knickers, I get clobbered every now and again when I have to pay £3.75 for a small coffee, £2.75 for 500ml of water and £4.10 for a plain burger, all of which is clearly burnt onto my memory. I’d like to say ‘never again’ but more about that tomorrow.
Anyway, elements of Langton are on holiday this week and next. The email could be a little bit shorter. On to the news:
GENERAL NEWS – PUBS & RESTAURANTS:
Heineken reports H1 net revenue organic growth up 5.6% but net profit down 1.2% organically to €1,054m. Consolidated beer volume was up 3.1% with Heineken® volume +6.9%. CEO Jean-Francois van Boxmeer said ‘ For the full year, we continue to anticipate our operating profit (beia) to grow by mid-single digit on an organic basis.’
Sky News has reported that the UK-based Just Eat and the Dutch Takeaway.com are set for a £9bn merger.
In a statement released by Takeaway.com, the proposed merger will see Just Eat shareholders owning approximately 52.2% and Takeaway.com shareholders owning approximately 47.8% of the combined companies. The proposed terms of the merger imply a value for Just Eat of 731p per share based on Takeaway.com’s closing share price on 26 July 2019 of €83.55.
Camden Town Brewery has been named the official beer of Arsenal Football Club. Camden Town Brewery founder Jasper Cuppaidge said: ‘The partnership with Arsenal marks a huge moment both for me and for the entire team at Camden Town Brewery and we can’t wait to share our great beers and a better beer experience with all of the supporters like myself’.
Texas Roadhouse has reported Q2 results stating EPS of 62 cents, up 17%, while revenue was $629.2m, an 11% gain. LfL sales at company restaurants increased by 5.7%
Crussh has opened its first hospital site in partnership with Sodexo, in Birmingham Children’s Hospital.
LVMH has seen its H1 2019 sales increase 15% to €25.1bn, while profit for the same period rose 14% to €5.3bn.
Diageo has stated that it is unflustered by comments from Boris Johnson promising leaving the European Union on the 31 October, ‘no ifs, no buts’. Diageo’s Corporate Relations Director, Dan Mobley commented: ‘We still think a deal is the best outcome and encourage both sides [Britain and the European Union] to come to an arrangement, but we always thought it prudent to prepare for a no-deal scenario and we have done so’.
HOLIDAYS & LEISURE TRAVEL:
A Virgin survey suggests seven out of 10 families have taken a multi-generational holiday, with 85% of respondents saying they would consider a UK break where children, parents and grandparents holiday together.
GfK reports summer bookings in for the week ended 20 July up 3% yoy but with bookings this summer still weaker on price. However, GfK’s latest figures left bookings for the summer 2019 season to date up 1% on the same point last year, with revenue 2% ahead.
The High Court has rejected an application by British Airways to seek an injunction against pilots’ union Balpa to stop strike action.
Boeing reveals it has taken a $4.9bn hit on the Boeing 737 Max aircraft in the three months to June, with reports suggesting the aircraft may not return to service until the New Year as a list of issues requiring resolution continues to grow.
The Financial Times reports Italian authorities are investigating whether Booking.com is liable for at least €150m in unpaid VAT. The investigation relates to VAT on payments between individuals for rental properties advertised on the site, not hotels.
British Airways has re-established its Cairo route following a security review.
The winner of the Fortnite World cup, 16 year old American Kyle Giersdorf, takes home a record-breaking $3m. British teenager Jaden Ashman won almost £1m for coming second in the duos event.
FINANCE & ECONOMICS:
START THE DAY WITH A SONG:
Last Friday’s song was We Didn’t Start The Fire by Billy Joel. Today, who sang:
“And she gave away the secrets of her past,
And said I’ve …,
And a voice that told her when and where to act,”
RETAIL WITH NICK BUBB:
Hammerson: The embattled shopping centre business Hammerson hasn’t got much to boast about in today’s interims, with net rental income down 7% LFL in its UK flagships and NAV also down by 7%, so it concentrates instead on the fact that it has managed to meet 90% of its 2019 asset disposal target by selling off most of a shopping centre in Paris. David Atkins, the beleaguered Chief Executive of Hammerson, says “The UK retail landscape is undoubtedly challenging and traditional High Street fashion is under pressure” and no doubt he will be asked at the 9am analysts meeting about the Sunday Times story that Primark is now demanding 30% rent cuts…
News Flow This Week: Tomorrow brings the Games Workshop finals, the Greggs interims and the Apple Q3 in the US. Wednesday brings the monthly GFK Consumer Confidence survey and the Next Q2 update, along with the beleaguered Intu Properties’ interims, the Dignity interims, the Travis Perkins finals and the Halfords AGM. On Friday we then get the Pets at Home Q1.