Stocks To Watch: GSK, ULVR, BP, DGE, RIO

Stocks To Watch: GSK, ULVR, BP, DGE, RIO

GlaxoSmithKline Plc

GlaxoSmithKline Plc (GSK) is a healthcare company focusing on the manufacturing, commercialisation, and development of pharmaceuticals vaccines and consumer healthcare products. It offers drugs for the treatment of cancer, HIV, anti-viral, metabolic, anti-bacterial, rare diseases, cardiovascular and urogenital, immuno-inflammation, respiratory, central nervous system (CNS), and dermatology. The company offers over the counter (OTC) products for pain, relief, nutrition, skin health, oral health, and gastrointestinal disorders.

Dividend

The company announced an interim dividend of GBX 19 per share. The Ex-dividend date is 08 August 2019, while the dividend will be paid on 10 October 2019.

Financial Highlights for Q2 FY19

The company’s revenues surged by 5 per cent on CER (constant exchange rate) basis to £7,809 million in Q2 FY19 due to good performance of vaccines and consumer healthcare. The group’s total operating margin stood at 19 per cent in the second quarter of the financial year 2019. The company’s operating profit was at £1,484 million in the second quarter of the financial year 2019 as against £779 million in the second quarter of the financial year 2018. The company’s EPS stood at 19.5 pence per share in the second quarter of the financial year 2019 as against 9 pence per share in the second quarter of the financial year 2018. From operating activities, the company’s cash was recorded at £1,389 million in the second quarter of the financial year 2019 as against £1,362 million in the second quarter of the financial year 2018. The company’s free cash flow plunged to £370 million in the second quarter of the financial year 2019 as against £492 million in the second quarter of the financial year 2018, due to rise in Capex and intangible assets. The company is hopeful of maintaining the dividend at 80 pence per share for the Financial Year 2019 and declared a dividend of 19 pence per share for second quarter of the financial year 2019.

GSK Share Price performance

Daily Chart as on 08-August-19, before the market close (Source: Thomson Reuters)

On 8th August 2019, at the time of writing (before the market close, GMT 12:04 PM), GSK shares were trading at GBX 1,649, down by 0.54 per cent against the previous day’s closing price. Stock’s 52- week High and Low prices are GBX 1,749.40/GBX 1,408.80.

 

Unilever PLC

Unilever Plc (ULVR) is a global company selling fast-moving consumer goods, with two home countries: the Netherlands and the United Kingdom. The company is engaged in the production and marketing of a variety of products from different categories such as home care, food, health, beverages and wellbeing. The company has divided its operations into three reportable segments, those being Foods & Refreshment, Home Care and Beauty & Personal Care.

Dividend

The company announced an interim dividend of $0.39 per share, representing a decrease of 1.02% over the last dividend payment. The Ex-dividend date is 08 August 2019, while the dividend will be paid on 11 September 2019.

Financial Highlights for H1 Financial Year 2019 (€, million)

For the First half of the financial year 2019, the company’s turnover declined by 0.9 per cent (AER) to €26,126 million as against €26,352 million in H1 FY2018. The company’s operating profit was up by 1.3 per cent (AER) from €4,529 million in H1 FY2018 to €4,589 million in H1 FY2019. The PBT (Profit before tax) increased by 0.6 per cent to €4,354 million in H1 FY2019 from €4,329 million in H1 FY2018. The Net Profit for the period declined by 0.6 per cent to €3,209 million in H1 FY2019 from €3,229 million in H1 FY2018. The net profit attributable to the shareholders stood at €3,006 million in H1 FY2019 as against €3,031 million in H1 FY2018. The company’s basic earnings per share increased by 3.4 per cent to 1.15 euros in H1 FY2019 from 1.11 euros in H1 FY2018. The Diluted earnings per share for H1 FY2019 stood at 1.14 euros versus 1.11 euros in H1 FY2018, up by 3.4 per cent and 2.3 per cent on AER and CER basis respectively.

ULVR Share Price performance

Daily Chart as on 08-August-19, before the market close (Source: Thomson Reuters)

On 8th August 2019, at the time of writing (before the market close, GMT 12:07 PM), ULVR shares were trading at GBX 4,832.00, down by 0.63 per cent against the previous day’s closing price. Stock’s 52-weeks High and Low prices are GBX 5,122.00/GBX 3,904.94.

 

BP Plc

BP PLC (BP.) is a London, the United Kingdom-based British integrated oil and gas company. It is a vertically integrated company, engaged in activities such as exploration and production of oil and natural gas, developing renewable energy and marketing petrochemicals. The company’s operations are divided into three reportable segments being Upstream, Downstream and Rosneft.

Dividend

The company announced an interim dividend of $0.61 per share. The Ex-dividend date is 08 August 2019, while the dividend will be paid on 20 September 2019.

Financial Highlights for H1 Financial Year 2019 ($, million)

For the first half of the financial year 2019, the company’s total revenues stood at $141,154 million as against $146,050 million in H1 FY2018. The company’s revenues declined due to lower revenues from the company’s Downstream business for the period. The company’s revenues in Q2 FY2019 stood at $73,747 million versus $76,907 million in Q2 FY2018. The company’s profit before tax and interest stood at $9,680 million for H1 FY2019 versus $10,051 million in H1 FY2018. The PBT (Profit before tax) for H1 FY2019 was $7,930 million as against $8,901 million in H1 FY2018. The company’s profit for the period stood at $4,903 million for H1 FY2019 versus $5,404 million in H1 FY2018. The company’s profit for the period attributable to the shareholders stood at $4,756 million for H1 FY2019 versus $5,268 million in H1 FY2018. The company’s basic earnings per share for H1 FY2019 stood at 23.47 cents versus 26.42 cents in H1 FY2018. The company’s diluted earnings per share for H1 FY2019 stood at 23.35 cents against 26.27 cents in H1 FY2018.

 

BP PLC Share Price performance

Daily Chart as on 08-August-19, before the market close (Source: Thomson Reuters)

On 8th August 2019, at the time of writing (before the market close, GMT 12:10 PM), BP PLC shares were trading at GBX 501.4, down by 0.83 per cent against the previous day’s closing price. Stock’s 52- week High and Low prices are GBX 603.60/GBX 481.35.

 

Diageo PLC

Diageo PLC (DGE) is a London-based global alcoholic beverage company that offers a broad collection of over 200 brands across spirits and beer in more than 180 countries across the world. The group’s operations are differentiated in geographical segments: Latin America and the Caribbean, Africa, Europe, Turkey, North America, Asia Pacific and ISC. These brands include Captain Morgan, Johnnie Walker, Baileys, Don Julio, Cîroc and Ketel One vodkas, J&B, Smirnoff, Crown Royal, Buchanan’s and Windsor whiskies, Tanqueray and Guinness amongst others.

Dividend

The company announced an interim dividend of $2.11 per share, a 55.91 per cent rise over the last dividend payment. The Ex-dividend date is 08 August 2019, while the dividend will be paid on 08 October 2019.

Financial Highlights for Financial Year 2019 (£, million)

The company reported a growth of 6 per cent in its net sales to £12.9 billion, supported by positive organic net sales growth across all regions. Driven by organic operating profit (before exceptional) growth of 9 per cent, reported operating profit (before exceptional items) rose by 8 per cent to £4,116 million in FY2019 versus £3,819 million in FY2018. The company’s operating profit increased by 10 per cent from £3,691 million in FY2018 to £4,042 million in FY2019The company’s profit attributable to the shareholders was up by 5 per cent to £3,160 million in FY2019 from £3,022 million in FY2018. While the basic earnings per share increased by 7 per cent to 130.7 pence, pre-exceptional items EPS rose by 10 per cent to 130.8 pence, reflecting lower finance charges and higher operating profit. The company recommended a full-year dividend of 68.6 pence per share in FY2019, reflecting an increase of 5 per cent from the previous year. The cash flows continued to be strong, with free cash flow increasing by £85 million to £2.6 billion, and net cash from operating activities, up by £164 million to £3.2 billion.

DGE Share price performance

Daily Chart as on 08-August-19, before the market close (Source: Thomson Reuters)

On 8th August 2019, at the time of writing (before the market close, GMT 12:15 PM), Diageo Plc shares were trading at GBX 3,312.5, down by 1.96 per cent against the previous day’s closing price. Stock’s 52 weeks High and Low is GBX 3,538.00/GBX 2,513.00.

 

Rio Tinto Plc

Rio Tinto Plc (RIO), a mining and metal company has a global footprint in Aluminium, one of the world’s most omnipresent metals. It is traded on the London Stock Exchange. Rio employs around 47,000 workforces and operates in 35 countries across six continents.

Recent developments

The company had earlier discovered precious metals at project Winu in the basin of Yeneena, which is in the province of Paterson in the western region of Australia. The company recently released an update on the forty-two drill holes which are supposed to have copper, gold and silver mineralisation at the bottom with a currently defined strike length of approximately 2100 metres. The results are encouraging, but it would take time to make an assessment and understanding of the quantum of mineral deposits.

Dividend

The company announced an interim dividend of 123.32 pence per share. The Ex-dividend date is 08 August 2019, while the dividend will be paid on 19 September 2019.

Financial highlights for H1 FY19

The company’s gross revenues were up by 3 per cent to $21.8 billion in H1 FY19 as against $21.2 billion in H1 FY18. The company’s underlying EBITDA was up by 11 per cent to $10.3 billion in H1 FY19 as against $9.2 billion in H1 FY18. The company’s underlying earnings were up by 12 per cent to $4.9 billion in H1 FY19 as against $4.4 billion in H1 FY18. The company’s net earnings were down by 6 per cent to $4.1 billion in H1 FY19 as against $4.4 billion in H1 FY18. In addition, the company announced share buy-backs as well as dividends of $3.5 billion in H1 FY19 as against $3.2 billion in H1 FY18. The company’s net debt (pro-forma) was down by 40 per cent to $5.6 billion in H1 FY19 as against $9.3 billion in H1 FY18.

RIO Share price performance

Daily Chart as on 08-August-19, before the market close (Source: Thomson Reuters)

On 8th August 2019, at the time of writing (before the market close, GMT 12:17 PM), RIO shares were trading at GBX 4,110.00, down by 2.02 per cent against the previous day’s closing price. Stock’s 52- week High and Low prices are GBX 4,979.14/GBX 3,278.77.

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