Week Ahead: Local Releases in Full Swing Next Week

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On the local front, another busy week is on the cards:

  • African Rainbow Minerals Ltd (JO: ARIJ ) (Full-Year Results): Headline earnings per share (HEPS) are expected to increase by between 130% and 138% y/y. Earnings growth was underpinned by higher iron ore and PGM prices, coupled with an increase in export iron ore and PGM sales volumes.
  • AVI (JO: AVIJ ) (Full-Year Results): HEPS are expected to increase between 5% and 7%. Revenue increased 0.5%, mainly due to higher volumes at I&J in 2H21 and price increases in most categories that offset cost pressures. The gross profit margin was protected through effective cost management and promotional activity, as well as selling price increases. Selling and administrative costs were lower, resulting in operating profit growth.
  • Bidvest (JO: BVTJ ) Group (Full-Year Results): HEPS, including operational losses from the discontinued Bidvest Car Rental in the prior year, are expected to rally 200% to 210% y/y. HEPS from continuing operations will be 109% to 119% higher y/y. Normalised HEPS from continuing operations will increase by 23% to 28% y/y.
  • Libstar Holdings (JO: LBRJ ) (Interim Results): Normalised HEPS from total operations are expected to fall between 23.7% and 32%. Normalised HEPS (continuing operations) are expected to range between a fall of 3.7% and growth of 2.1%. Normalised EBITDA is expected to range between a contraction of 2.7% and growth of 2.3%. Revenue rose 8.7% y/y driven by increased sales in the group’s largest categories, Perishables (+12.5%) and Groceries (+12.9%). Baking & Baking Aids grew marginally by 5.8% while Snacks & Confectionary (-11%) and HPC (-9.6%) weighed on growth.
  • Sanlam (JO: SLMJ ) (Interim Results): HEPS has been guided to increase between 0% to 10% y/y. The Group continued to deliver on the resilient performance demonstrated in FY20, achieving a satisfactory performance despite the persisting impact of Covid-19. Net results from financial services are expected to grow by between 10% and 15%.
  • Momentum Metropolitan Holdings (JO: MTMJ ) (Full-Year Results): Normalised HEPS are expected to decline between 30% and 50% on an increase in provisions against Covid-19 related mortality and disability claims of ~R1.6 billion (net of tax) and an increase in the Covid-19 provision of ~R700 million. The group experienced net mortality losses of R2.8 billion for FY21.
  • RCL Foods Ltd (JO: RCLJ ) (Full-Year Results): The company expects HEPS to grow between 721.5% to 740% y/y. The strong improvement was largely driven by an excellent performance in the Sugar and Baking business units and continued strong delivery in Grocery. Chicken continues to focus on its turnaround plan, which is expected to deliver benefits in the next financial year.
  • Shoprite (JO: SHPJ ) (Full-Year Results): Adjusted basic HEPS from total operations are expected to increase 22.3% to 32.3%. In terms of continuing operations, HEPS will be 15.9% to 26% higher y/y. Total merchandise sales from continuing operations increased 8.1% (52 weeks: +5.9%). Excluding the impact of liquor trading restrictions, total sales grew 8.3% (52 weeks: +5.9%). The group’s core business, Supermarkets RSA, grew sales 9.3% with like-for-like growth at 7.3%. Internal selling price inflation came in at 3.8%.
  • Trellidor (JO: TRLJ ) (Full-Year Results): Management expects HEPS to improve between 189% and 209% y/y. Growth was driven by solid turnover growth and control of overheads. In addition, the group repurchased and cancelled 4.98% of its shares in issue, reducing the weighted average number of shares.
  • From a corporate actions perspective, Tuesday marks the last day to trade Emira Property Fund (JO: EMIJ ), Gold Fields (JO: GFIJ ), MultiChoice Group (JO: MCGJ ), NEPI Rockcastle (JO: NRPJ ), Novus Holdings (JO: NVSJ ), Reinet Investments SCA (JO: RNIJ ), South32 (JO: S32J ), and Tower Property Fund (JO: TWRJ ) to receive their most recently declared distributions.
  • MTN (JO: MTNJ ) Zakhele Futhi (RF), Compagnie Financière Richemont SA (JO: CFRJ ), MiX Telematics, Stor-Age Property REIT, Stenprop (JO: STPJ ) and Tongaat Hulett will host AGMs in the upcoming week. Balwin Properties (JO: BWNJ ), Fairvest Property Holdings and Ellies Holdings will also host a GM in the upcoming week.

A less eventful week is expected offshore, with only a few stocks anticipated to release results next week. In the US lookout for the following releases:

  • Oracle’s 1Q22 earnings are expected to increase 4.1% y/y, slowing down from a strong 4Q21 (+28.3%). Oracle (NYSE: ORCL ) could see growth in its application business improve through 2H21 and into 2022, as corporations accelerate upgrades to their on-premise applications and move to the cloud. Oracle has one of the broadest cloud-application portfolios and is generally a top-four provider in most areas, from human resources to enterprise-resource planning.
  • Kroger (NYSE: KR ) expects 2Q21 same-store sales to decline between 2.5% to 4% but could show gains on a two-year basis, reflecting a strong core business. Alternative revenue could show strength, fuelled by retail media and Kroger personal finance.

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  • Leon Teyise @Leon Teyise
    Good read and very informative Baba
    Like 1