FTSE 350 Look Ahead: Fevertree, Inditex, Redrow, And ABF

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Look ahead to FTSE 350, other companies reporting & economic events from 11 – 15 September

  • Associated British Foods plc (LON:ABF) set for moderate profit growth
  • Progress in the US will be key for Fevertree Drinks PLC (LON:FEVR)
  • Will Inditex (BME:ITX) remain in fashion with consumers?
  • Redrow (LON:RDW) navigates an uncertain market

Fevertree, Half Year Results, Tuesday 12 September

Matt Britzman, equity analyst, Hargreaves Lansdown:

Fevertree’s lofty valuation, currently just shy of 50 times forward earnings, means there’s always pressure to deliver when it comes to earnings season. But there are a few things in particular to watch for in next week’s half-year results. First and foremost is overseas expansion, specifically in the US, arguably the main reason for the high growth valuation.

Delays ramping up bottling production last year meant the group relied on shipping to serve US customers, leaving it at the mercy of inflated freight costs and port congestion. With signals earlier in the year suggesting issues have been ironed out, investors would like to see some benefits feeding through to the bottom line.

Margins are also in focus, with cost-cutting exercises expected to yield some results as we move through the year.  Nonetheless, analyst consensus sees profit before tax margin falling from 9% to 7% this year, with annual improvements coming in the 2024 financial year.”

Associated British Foods, Full Year Trading Statement, Tuesday 12 September

Aarin Chiekrie, equity analyst, Hargreaves Lansdown:

“In June, revenue at the key Primark business grew at double-digit rates thanks to higher prices and volumes. Market share’s also been on the rise in the UK, as some consumers moved to lower-priced clothing to help ease the pressure on their wallets. And, with all other business divisions growing the top line too, Associated British Foods expects full-year underlying operating profits to be moderately ahead of the previous year.

Next week’s trading statement should give some insight into how well cash flows are being managed. Spending £140m on share buybacks and increasing inventory levels in the Sugar and Primark businesses free cash flow turned negative in the first half.

Analysts are hoping to see that a good chunk of those stockpiles have unwound over the second half, helping to push cash flows back in the right direction. But just how much progress has been made by next week’s results will likely have a direct impact on the group’s ability to fund future dividends and share buybacks, and no shareholders returns are guaranteed.”

Inditex, Half Year Results, Wednesday 13 September

Aarin Chiekrie, equity analyst, Hargreaves Lansdown:

“Inditex owns fashion favourites like Zara, Pull&Bear and Bershka. The group had a strong start to 2023, with first-quarter sales up 15% to €7.6bn on a constant currency basis. This strong growth across all geographies and brands highlights the success of Inditex’s strategy to close smaller stores and focus on bigger ones in prime locations.  But it’s worth remembering that operating expenses are also increasing at double-digit rates, so a continued focus on cost management will remain key.

Next week’s results should also give an early peek into how well customers have received the new Autumn/Winter collections. While we think it’s one of the better-placed fashion retailers, Inditex’s relatively high clothing price point, and lofty valuation compared to peers, brings with it an element of risk, and means there’s continuous pressure to continue delivering strong growth. Analysts are expecting operating profit to rise 12.1% in the second quarter, and any slip-ups on this front will likely be punished.“

Redrow, Full Year Results, Wednesday 13 September

Susannah Streeter, head of money and markets, Hargreaves Lansdown:

“Redrow had already flagged that 2023 was set to be a challenging year and certainly the continuing ramping up in interest rates hasn’t helped buyer sentiment across the market as a whole. However, the company had noted a positive start to the second half of the year, with net reservations per outlook per week coming in slightly higher compared to the first six months.

A loss of momentum in reservation rates will disappoint investors, but it would not come as too much of a surprise given the volatility which hit the sector earlier in the summer, when forecasts of where interest rates would end up shot higher, pushing down buyer sentiment. However, recent data on business activity across the economy as a whole appears to show a faster slowdown than expected, and the Bank of England is no longer expected to hike rates quite so high.

In addition, forecasts from major lender, Nationwide, that the housing market may achieve a softer landing, given unemployment is set to stay low by historical standards, helping affordability has also been lifting sentiment. Redrow had declined to give guidance for 2024 earlier in the year, citing uncertainty, so its forecast for the next 12 months will be closely watched in these full year results.”

Among those currently scheduled to release results next week:


Vistry*Half Year Results


Associated British Foods*Full-Year Trading Statement
Digital 9 InfrastructureHalf Year Results
Fevertree*Half Year Results
JTCHalf Year Results
Keywords Studios*Half Year Results


Inditex*Half Year Results
RedrowFull Year Results
Tullow OilTrading Statement


Foresight Solar FundHalf Year Results
IG Group HoldingsQ1 Trading Statement
RenishawFull Year Results
Spire HealthcareHalf Year Results
TrainlineTrading Statement


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*Events on which HL will be updating investors