Kingfisher plc (LON:KGF)
The home improvement retailer saw a 1.7% drop in sales on a constant currency basis during the second quarter, while like-for-like sales fell 1.9% on account of continued weakness in France and an 11% drop in its popular B&Q stores’ like-for-like sales in the UK & Ireland.
KGF pointed towards seasonal outperformance in the comparable quarters behind weak showing by B&Q, which accounts for nearly a third of its overall sales. The retailer’s ONE Kingfisher transformation plan, which involves a unified structure and products with a $500 million annual savings target in five years, presents “continued business disruption”; however, KGF saw an “overall improving trend”.
“Having been very aware that this year would be challenging given the step up in transformation activity, we already have self-help plans in place to supportour overall Year 2 performance, though we remain cautious on the H2 outlook for the UK and France as previously guided”, said CEO Véronique Laury. Investors reacted to the caution as shares closed the Thursday session 4% lower.
Hikma Pharmaceuticals Plc (LON:HIK)
Hikma reported 5% revenue growth during the first-half of 2017, driven by the two months contribution from recently acquired (for almost US$2 billion) West-Ward Columbus and “continued growth in injectables”. But the shares in the London-based pharmaceuticals manufacturer fell nearly 10% Thursday on indicating continued headwinds to its generics business, which triggered a downward revision in full-year revenue — from US$2.2 billion to US$2.0 billion. The company now expects generics to generate US$620 million compared to US$800 million forecasted previously.
“In the US, where competition is increasing and pricing pressure is intensifying, sales in our Injectables business were resilient and we maintained our track record of strong profitability”, commented Mr Darwazah. “The tougher market conditions did however continue to limit growth in our Generics business”, he added.
Find out stocks with upbeat outlook in Super Growth